Posted On: 08/18/2012 11:42:10 AM
Post# of 4018
How does Rod, or any company insider, ensure he doesn't lose money on his initial investment?
1) Salary
2) Issued shares
3) Preferred shares
Most people know that while common shares are affected by reverse splits, preferreds are not. Rod would obviously prefer to make his investment back the honest way, so that his salary, allocated shares, and preferreds are just icing on the cake. But rest assured, if A/S increases and reverse splits happen, insiders will make sure they are taken care of first. Anyone who doubts this is not being realistic.
1) Salary
2) Issued shares
3) Preferred shares
Most people know that while common shares are affected by reverse splits, preferreds are not. Rod would obviously prefer to make his investment back the honest way, so that his salary, allocated shares, and preferreds are just icing on the cake. But rest assured, if A/S increases and reverse splits happen, insiders will make sure they are taken care of first. Anyone who doubts this is not being realistic.
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