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wwinny
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...banks into common stock? This is regarding today's article on saving the Nation's banking system: Obama plans to convert the government's existing loans to the nations's 19 biggest banks into common stock. I don't have any prior knowledge in finance, but would like to understand this. I thought these banks are already publicly traded and so how would this work if additional stocks are created for them? Also can you turn loans into common stocks? That concept is foreign to me. How does this work? How does the issuer loose or profit from this, and how does the investor loosesor profit from this?
The article said, "Some strategies to convert preferred shares to common stocks".
What are the differences between preferred shares and common stocks?
Also the news article mentioned that the risk of such action is that it is a back door to nationalization. What does "nationalization" mean here. As I said, I had very little finance background and am extremely curious. Thank you!
The article said, "Some strategies to convert preferred shares to common stocks".
What are the differences between preferred shares and common stocks?
Also the news article mentioned that the risk of such action is that it is a back door to nationalization. What does "nationalization" mean here. As I said, I had very little finance background and am extremely curious. Thank you!