Nobody would ever buy a preferred with a trap door like that. It has to be 1.28 of some higher price. It's not going to convert at a lower price if the company is acquired. That doesn't make sense.
First, apologies for the delayed response, I will update my notifications so I can be more timely in the future.
Second, you can't say "nobody" since obviously they sold the preferred and I bought it myself. But that's pedantic, whats important is that you are clearly right that it's a huge flaw in the rights of SRG preferred and the purchase is likely a mistake on my part. I haven't sold yet, but I continue to weigh the risks and might soon.
Thanks for the response. It's at the right of the preferred holder whether to convert. So there is no need to convert if the conversion is below redemption price.
Nobody would ever buy a preferred with a trap door like that. It has to be 1.28 of some higher price. It's not going to convert at a lower price if the company is acquired. That doesn't make sense.
First, apologies for the delayed response, I will update my notifications so I can be more timely in the future.
Second, you can't say "nobody" since obviously they sold the preferred and I bought it myself. But that's pedantic, whats important is that you are clearly right that it's a huge flaw in the rights of SRG preferred and the purchase is likely a mistake on my part. I haven't sold yet, but I continue to weigh the risks and might soon.
Thanks for the response. It's at the right of the preferred holder whether to convert. So there is no need to convert if the conversion is below redemption price.