Law Blog Tag: death spirals
Registering Convertible Securities
January 12, 2010 in SEC Guidance
Many clients seek to register convertible securities, such as convertible debentures, warrants, options or convertible preferred stock. The question most often asked is how many share need to be registered, and in particular, does the Company need to register the shares underlying the convertible security.
First, it is essential to review a few basic facts on what a convertible security is and how it works.