Bank of America

Yesterday, BofA sold $12 billion of preferred stock, twice as much as planned. Sold to bolster capital and help it absorb acquisitions after 4th quarter profit fell 95%. The 2nd largest US bank said it sold $6 billion of perpetual preferred shares and $6 billion of perpetual preferred shares convertible into stock. Perpetual shares do not have a maturity date. The preferred shares carry an 8% dividend. The convertible preferred shares carry a 7.25% dividend and a $50 conversion price, which is 25.3% above the bank's closing price. The shares fell 1.7%, to close at $39.90.