01 March 2012
A public listed Company wants to reward its loyal shareholders, who have held the shares for a minimum period say 5 years, and not to those who have held it for lesser period.
Which financial instruments can be used for this purpose.
Is there any concept of loyalty coupon or can it do so by issuing convertible warrants to all the shareholders now, with a right of conversion to only those who hold the shares for at least 5 yuears from now.