SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Action & Options- Taxikid plays -- Ignore unavailable to you. Want to Upgrade?


To: Druss who wrote (2776)11/18/1997 12:25:00 PM
From: taxikid  Read Replies (1) | Respond to of 4339
 
what would you like to know about convertible debentures?
they file a trust indenture[deed of trust] form w/ sec-{above $5 million}
convertible "bonds" guarantee that the bondholders get a % and can convert after a certain period the amount owed into stock-
this dilutes the float-
it also can shange ownership of the company and allows thos institions/individuals that normally aren't allowed to buy stock to participate-
also the tax advantage given to the issuer is lost upon conversion- however the retained earnings may make the balance sheet look better-
one last thing is that the conversion can come at many different times or not at all-
even if it is a sliding scale-
the bondholders may rather wait and get interest before converting-
taxi