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To: Charger who wrote (1359)	5/3/1998 7:37:00 AM
From: Crossy	Read Replies (2) of 9440

re: floorless Charger, a "floorless" security is a security that is convertible into another - usually a common stock of a company with a variable (e.g. not fixed) conversion price. Usually it's the words "convertible at the ratio of $X dividied by the average bid price of the common stock during the conversion period..". This is usually done in order to protect the holders of preferred / convertibles against dilution effects of the common stock. However it invites MMs and holders of the floorless security to short against the box as Gary mentioned it with the convertibles some posts ago. See the problem is not with the convertible but with the variable conversion ratio attached.. regards CROSSY

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