In 2025, the trend of preferred shares converting to common shares is becoming more and more intense. This conversion has dramatically changed the financial structure of companies, but investors have sniffed out business opportunities.

The conversion process is very complicated. Shareholder approval, amendments to the articles, and compliance with regulations are required. Investors need to be cautious, as this is a taxable event. Both the cost basis and the holding period need to be considered.

What about after the conversion? EPS may shrink, but the stock price could soar. Interesting, right? Take a certain tech giant for example, the stock price rose by 15% after the conversion, while EPS fell by 8%. It's really a case of one rising while the other falls.

When it comes to voting rights, it gets interesting. It is said that when a family business underwent a transformation, the voting rights dropped from 70% to 45%. This has stirred up quite a commotion, with the market buzzing with discussions.

When it comes to stable returns, special stock ETFs are indeed a good choice. The Yuanta Taiwan Special Stock Mixed High Dividend 20 Index ETF (020008) is quite good. It has low risk and stable returns, making it suitable for cautious investors.

Overall, the conversion of preferred shares into common shares seems simple, but in reality, it hides deeper complexities. Investors should take the time to think it through. Each company's situation is different, and market trends are ever-changing, so thorough research is essential.