Those choosing to take Citigroup up on its offer to convert your Citi trust preferred stock shares to Citi common stock shares should know your "break-even point."
Your break-even point is the market price that Citi's common stock must reach for you to hold the same value of common stock as you did preferred stock. Put another way, when the market price of Citi's common stock exceeds your break-even point, you are money ahead by having converted your preferred stock shares (i.e. you are at a point where you have an unrealized capital gain).This table allows you to do two things - (1) determine your break-even point and (2) click on the table to open a new window showing you Citi's current common stock market price.
Look down the first column of the table and find the purchase price that you originally paid for the Citi trust preferred stock shares that you are converting. Once you find your purchase price, look at the value in the second column next to your purchase price. This is your break-even point; if the market price of Citi's common stock moves above this break-even price you are money ahead for having converted your preferred stock shares.
Once you find your break-even price, click anywhere on the table and a separate window will open on your screen that shows you the current market price of Citi's common stock. You are hoping to see a value for Citi's common stock that is greater than your break-even price from the table.
Notice that this table does not take into account any dividends that you may have already received from your Citi trust preferred stock shares.
You can return to this blog any time to find this article again and click on the table to see how your break-even price compares to the current market price of Citi's common stock.
Many Happy Returns.
