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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: DoubleOddBuck who wrote (513)	6/26/1999 10:07:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 1438

It is probably legal, or they would not be able to register these shares, could it be these were early investors, even pre IPO? It is very unusual to issue new shares to a group of investors under the market price, first, it creates an immediate tax liability (but if they are in the Caymans, maybe they get away with it). I have known companies granting "free shares" (not even the disguise of a low conversion rate), so that is legal (the board authorizes and that is it), but I would not want to own shares in a company that does this, since if they do it once, they'll do it again. I would bail out. Zeev