RE:RE:RE:RE:NAV March 31I hold FFN preferreds. I did not own any FTN when they consolidated, but from the PR (late 2020), the commons consolidated but I don't see that the preferreds did. I do see that the preferreds saw a distribution rate bump of about 20%.
So, if FFN commons do consolidate in the same mannner as FTN, then the preferreds could possibly benefit. Can anyone confirm this?
Splitfunding wrote: I'm not an expert at split funds but from what I understand it occurs when the common shares become far overvalued. It happened to FTN at the last ermination date. The shares were consolidated at a 2.5 to 1 ratio and basically lost 60% of their value. It would take several years of study dividend payments to make up for that capital loss if you bought in at the funds usual value.
It's laughable how these companies claim the common shares can benefit from 'capital appreciation" when historically all that's ever happened is capital destruction.