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

To: Biomaven who wrote (91)	10/4/1998 9:50:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Peter, the imbalances are cleared by the floorless bandit delivering the newly issued shares to him upon conversion. He does not go into the market to cover (unless it is a "temporary situation to bring the price slightly higher and allow him renewed shorting). This often happens after he convert at 1/10 or lower then his initial shorting position, typically, and of course, the number of shares is typically 10 times the original number of shares contemplated in the original indenture documents. Zeev