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Capital Gains

09/23/07 7:52 PM

#2482 RE: bornlong #2481

Thanks for the support...bornlong...but it's not my theory....it's called the theory of Convertible debentures...and I've taken several courses that have described how they work for all parties...and the pitfalls...You need a password..which I have for school....but you get the point...there's a lot of analysis involved in these structured finance agreements...it's not just Darth Vader lending out money....There is a such thing as toxic financing...but with set dollar amounts that are known...a Low O/S to start with....and a maximum percentage of outstanding shares limitation like ours at 4.9% makes it so that although this isn't the ideal financing....it isn't toxic.

http://links.jstor.org/sici?sici=0022-1082(196603)21%3A1%3C35%3AAAOCDT%3E2.0.CO%3B2-2