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Ecomike

12/08/10 10:41 PM

#2288 RE: mikepga1 #2287

Assume the company you own some stock in owes you a bunch of money, and the loan is convertible into stock at a price equal to the average price for the last 10 days. The lower the share price for the last 10 days (average) the more shares you get on the debt for share swap for the fixed dollar debt. The more shares you get, the more of the company you own, but diluting others.