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To: JOEY who wrote (5313)3/6/1998 3:37:00 PM
From: Double Dipper  Read Replies (1) | Respond to of 27968
 
JAKE,

You seem to have a firm understanding of the preferred and exchanges
that IRA was referring to. If you don't mind doing a bit of
stock market 101. Could you expand on how this would typically
play out.

Thanks,

Kevin



To: JOEY who wrote (5313)3/6/1998 3:42:00 PM
From: Andrew H  Read Replies (2) | Respond to of 27968
 
Jake, you are confused about preferred shares. If they are convertible preferred as most are, the company must issue shares to cover them. That dilutes the company even further. It is not a win/win situation. You don't get something for nothing. Furthermore, the issuing of any shares, convertible preferred or not will do nothing to bring up the price of the stock--to the contrarty. They could be used to raise money for various purposes, but that's about it.