Valuation Topics
Ask your valuation questions here! Feel free to copy/paste specific sections from filings as appropriate.
Questions/Discussions
Sort by Date ▼ / Top Rated
Register for free or log in at the top right of this page to join the discussion
I've viewed the complex trading comps on convertibles. From what I understand, if market value of equity (if converted) exceeds the face value (at maturity), they would convert, and vice versa.
But I believe I've heard (I may be wrong) that convertibles may also have "price at conversion" and the whole dilution can be taken care of by saying that holders will convert if current stock price exceeds that "strike price" so to speak. And the number gets added on to the basic s/out. And if this is sometimes the case, are there also "proceeds" as in options, with which the company would buy back shares to minimize dilution (TSM)?
From my view-point, preferreds weren't really covered in terms of s/out dilution - is this because preferreds are very complicated?
Thank you Read More