Overstock.com to Dish Out Dividends in Digital Shares Listed On Pro Securities ATS Powered by tZERO
American internet retailer Overstock.com has just announced that they will be paying dividends to their shareholders in Digital Voting Series A-1 Preferred Stock (OSTKO).
The digital dividends will be paid at a ratio of 1:10. This implies that a share of Series A-1 will be given for every ten shares of common stock.
“Because the bundle of legal rights represented by each of these new A-1 shares is similar to the bundle of legal rights embodied in shares of our common stock (OSTK) that trades on NASDAQ, I might normally expect these blockchain-based A-1 shares to trade in rough approximation with OSTK. However, our legacy OSTK shares trade in a capital market with trading and settlement mechanisms about which I have long made my criticisms and doubts known to the public, whereas our new blockchain-based A-1 shares trade in a blockchain-based capital market which I believe is resistant to such dynamics.”
The investors are advised that trading in digital securities could entail ample risks, including no guarantee of returns, costs associated with selling and purchasing, no assurance of liquidity which could impact the price and ability to sell, and possible loss of principal invested.
Moreover, an investment in single digital security could mean lack of diversification and thus leading to even higher risk.
Earlier this week, BitcoinExchangeGuide reported about tzero issuing a new mobile app for Android smartphones, which allows users to store and exchange cryptos on their mobile phones. The launch of the android app comes after they announced a similar application for iOS devices with additional features such as a customizable user interface, widgets, and tutorials.