Convertible Preferred - is a class of stock issued by a company that holds certain rights and privileges reserved to the holder that typically gives the holder an advantage over common stockholders.  Most, but not all, convertible preferred stock is convertible into common stock either at a fixed rate, a floating rate based on the closing bid price, or based on some formula that provides some sort of anti-dilution privilege.  It is not uncommon for some companies to have several series of convertible preferred stock such Series A, Series B, Series C, etc.   Each of these separate Series may have totally different rights and privileges and be owned by different groups of shareholders/investors.

                Another important use being made with the use of convertible preferred stock is to provide additional voting rights above what is provided to the common stock holders.  For instance, common stockholders may be entitle to 1 vote per share owned, but convertible preferred stockholders may be entitled to 100 votes per share owned, giving them a distinct advantage in controlling the company.  This type of super voting right has earned this particular class of stock the nickname “Super Preferred Stock”. 

              Convertible preferred financing and convertible debenture (also known as convertible notes) financing are are sometimes used by Reverse Merger Funding and its affiliates when it finances public companies, finances middle management in the buy-out of senior management/owners, or funds merger or acquisition transactions.