Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?

To: Charger who wrote (1359)	5/3/1998 12:46:00 AM
From: Ga Bard	Respond to of 9440

Floorless Convertible Debentures ... I am not sure GB

To: Charger who wrote (1359)	5/3/1998 1:49:00 AM
From: Kurt N	Read Replies (1) \| Respond to of 9440

A floorless convertable debenture is any convertable debenture where there is no mininum conversion price (floor). There can also be a maxinum conversion price (ceiling). At least that's my definition. Kurt

To: Charger who wrote (1359)	5/3/1998 7:37:00 AM
From: Crossy	Read Replies (2) \| Respond to of 9440

re: floorless Charger, a "floorless" security is a security that is convertible into another - usually a common stock of a company with a variable (e.g. not fixed) conversion price. Usually it's the words "convertible at the ratio of $X dividied by the average bid price of the common stock during the conversion period..". This is usually done in order to protect the holders of preferred / convertibles against dilution effects of the common stock. However it invites MMs and holders of the floorless security to short against the box as Gary mentioned it with the convertibles some posts ago. See the problem is not with the convertible but with the variable conversion ratio attached.. regards CROSSY