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Johnny_C

12/05/16 10:38 AM

#39119 RE: zeynoc #39116

Yes do you. Lenders take advantage of companies with limited capital and no other source of funding. Read some of the notes and interest rates charged in the past in the filings. Convertibles are an easy way to set up a revolving door of toxic financing. I worked for a market maker, we brought small cap stocks public.


Maybe you might want to google it. Just go to your browser and type in google. Then when the search box appears type in toxic financing. Hope that helps.

Death spiral financing is a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company's stock to fall dramatically, which can lead to the company's ultimate downfall.