By Charles Rotblut (Guest Post)
The deal Warren Buffett made with Bank of America (BAC) was sweeter than many investors may have realized. A special class of 6% Cumulative Perpetual Preferred Stock is being issued to his Berkshire Hathaway (BRK-A and BRK-B) along with a warrant to purchase 700,000,000 shares of common stock. There are two parts to this deal that have benefits not available to the public. I’ll start with the warrant. A warrant is a contract to buy shares directly from the issuing company at a specified price. The key words here are “from the issuing company.” The shares set…
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