It emerged that Citigroup has begun discussions on how to reduce the American government's 34% stake in the bank, which the Treasury bought through a preferred-stock conversion.
Mr. Miller, the 47-year-old energy aide to Mr. Reid, bought shares in Energy Conversion Devices stock in two chunks on Jan. 14 and Jan. 16, 2008, according to filings.
Most convertible securities allow the buyer to convert into common stock at a fixed conversion price set at a modest premium to wherever the common is trading at the time the convertible security is issued.
Companies offer executives interest-paying bonds convertible into stock at a very attractive conversion price.
Evidently Dennis Hayes had so much confidence in his company that he figured the stock would zoom upwards, taking the conversion price up with it.
The Facebook COO also set aside more than 15.8 million shares, about 47% of her converted shares, to pay for taxes upon conversion of her RSUs into stock.
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This results in your having to pay ordinary income tax on the entire value of your company stock holdings if you do such a conversion (rather than just the basis).
Since its conversion its total return, comprising stock appreciation and dividends, has far exceeded close competitors and the market.
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Sedona was so desperate (or naive) that it signed off on a dangerous conversion feature: The more the stock went down, the more shares the bondholder was entitled to upon converting.
Stock prices are up in the wake of its conversion to a real estate investment trust ( REIT).
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With its REIT conversion, American Tower stands out as a dedicated dividend stock investment with a strong growth profile that has consistently driven itself to be a determined winner.
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Because people wrongly view preferreds as less safe than bonds, the preferreds tend to have better yields and lower conversion premiums. (The conversion premium is the amount by which the price of a convertible exceeds the value of the common stock you would get if you converted.) Another plus: They are exchange traded, so preferreds are more liquid.
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