AleisterCrowley wrote:Gan020 wrote:It is the nature risk analysis. Most of the popluation underestimate risk and overestimate opportunties.
In the case of shares, bonds and everything else to do with the stock market it is apparent to me that 95% of investors do not read a set of company accounts, let along read every word of the bond or pref share prospectus. We know this because of the large number of questions that get asked.
In the case of the RSAB prefs, downloading the listing pariculars from RSA's website gives us some insight into this because you do not get a clean pristine document from the day it was published. What you get instead is interesting because someone has used a computer generated day-glo highlighter on it in 4 places.
I will not touch RSAB unless it goes much closer to par, mainly because if I want a 5.5% yield I can get that with much lower risk to my capital.
The RSAB particulars state that pref holders have a right to vote at any EGM affecting them
It's not clear (to me) if that vote is limited to pref holders or pooled with holders of ordinary shares. In the latter case I guess the ordinary share holders may vote to redeem the prefs at par if it benefits them
You are right. All shareholders (ords and pref's) can vote and from memory the ords can easily outvote the pref's.