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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (3407)3/25/2008 11:38:38 PM
From: Judge17  Read Replies (1) | Respond to of 6370
 
I agree that TMA as a public company is in serious trouble, but if you short 1,333 per thousand face value of the pref, are you not protected?

Let's say one buys $100,000 of the new pref and shorts 133,333 of the common where is the downside risk? I would think that one could off load 133,333 share without impacting the price of the common that much.

I am just trying to understand why the $20 bill on the ground is not a $20 bill.