9/10 C preferred share is converting to common share

Is that why C is going down today? But to my understanding, the conversion has no effect on book value. Preferred share is like a type of loan, switching it to common equity shouldn't effect common share value. I think people are just selling on fear/uncertainty.
There is fairly large volume of calls on C yesterday and today. I believe C is still bullish.

所有跟帖： 

• 还没毕业吧，是否读完书再来？ -上流Man- ♂ (0 bytes) () 09/09/2009 postreply 13:07:17

• so you think C is bearish? or the conversion -passers- ♂ (28 bytes) () 09/09/2009 postreply 13:18:08

• C允许扩到60B股，若$5，市值是300B，等于BAC+JPM's -上流Man- ♂ (0 bytes) () 09/09/2009 postreply 13:31:59

• 您觉得这个窝囊废有这么大的潜力吗？ -上流Man- ♂ (0 bytes) () 09/09/2009 postreply 13:33:17

• U r wrong. 60B is authorized. But only 26 B is used -SleepyGreenLion- ♂ (95 bytes) () 09/09/2009 postreply 14:24:32

• 这个我几天前已经谈过了，所以才使用“允许” -上流Man- ♂ (65 bytes) () 09/09/2009 postreply 14:46:10

• my understanding of this conversion -passers- ♂ (619 bytes) () 09/09/2009 postreply 14:28:24

• OK，以你例子若按$0.5换股，共3股for$2资产，如何？ -上流Man- ♂ (0 bytes) () 09/09/2009 postreply 14:50:15

• 回复：9/10 C preferred share is converting to common share -sleepygreenlion- ♂ (171 bytes) () 09/09/2009 postreply 14:21:28

• I agree with your view. -passers- ♂ (0 bytes) () 09/09/2009 postreply 14:29:44

• 问题是稀释的太狠了：以$3.28换，总股数从5.5B变成22.88B -上流Man- ♂ (0 bytes) () 09/09/2009 postreply 14:56:11

• Preferred share conversions are usually done on a dollar-for-dol -passers- ♂ (279 bytes) () 09/09/2009 postreply 15:22:52

• 是地球人都知道Citi以$3.28每股转换美国政府、沙特王子等的preferred shares -上流Man- ♂ (91 bytes) () 09/09/2009 postreply 17:33:04