Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Zeev Hed who wrote (12)	8/1/1998 11:28:00 PM
From: Harold Feller	Read Replies (1) of 1438

Hello Zeev: I think the bottom line on why your theory holds water is probably called good ole: equity dilution. With more stock being issued/or going to be issued each share today will be worth less tomorrow. Its a shorters paradise. No calculus really needed. The part about shorting on the open market and covering when preferred is converted to outstanding........I am having problems picturing this scenario.........(I thought that shortselling and shortcovering were open market transactions.)????

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