By providing shareholders of Overstock with with digital dividends.
Overstock and Digital DividendsIf you have the stomach to be a shareholder in Overstock, a company that continues to have regular volatility, then you might find comfort in knowing that Overstock will release a digital dividend. The company released a statement, announcing that its Board of Directors declared dividends “payable in shares of its Digital Voting Series A-1 Preferred Stock (the ”Series A-1“).
Where Would One Trade These Digital Dividends?Hold the series A-1 digital shares on the PRO Securities alternative trading system (ATS), mostly owned and operated by tZERO Group, Inc.
Will These Digital Dividends Have Liquidity?Investors will have to hold these shares for a period of six months. After, there should be sufficient liquidity on the PRO Securities alternative trading system (ATS).
Legalities of the series A-1 Digital SharesInvestors will have the same “bundle of legal rights” that are present within the current common stock of the company.
Further tZero Adoption?In addition, Saum Noursalehi has stated in the past that tZero tokens should be available for trading to non accredited investors. This means that there might be more interest on this platform over the course of this year.
You Will HODL The Series A-1 Digital SharesOne more important note is that these Series A-1 digital shares do not have to fall under the Securities Act of 1933. As such, it is my understanding that investors will have to hold these shares under Rule 144 of the Securities Act and will not be able to trade them over a period of six months.
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