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

To: RockyBalboa who wrote (1188)	6/29/2000 3:02:00 PM
From: Puck	Read Replies (2) \| Respond to of 1438

I think I understand Dr. Zeev's statement with the help of your example. In such a case where the conversion rate is at a 33% discount to the market, there does appear to be a doubling of the initial investment outlay with each halving of the stock price. But, as in Dr. Zeev's seminal illustration of how a floorless works in message #3 on this thread, where there is no discount, the increase on at least the initial halving amounts to a more modest 50% gain.