More Questions For A Dreyfus Fund Manager

Did Michael Schonberg have a second conflict of interest?

On Jan. 28, 1997, an obscure Houston manufacturer called American Medical Technologies Inc. registered 5.4 million stock-purchase warrants with the Securities & Exchange Commission. In the world of micro-cap stocks, warrants are a kind of gold-plated discount coupon that allow favored investors to buy stock at below-market prices. In this case, the 100 warrant holders were getting a chance to buy American Medical shares at 50 cents to $1.25 each--for a stock that was trading at about $2.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.