Wall Street’s Toxic Tool
Article discusses the reset security, also known as the “death-spiral convert” and sometimes as a “toxic” (privately held preferred stock or bonds that can be exchanged for shares of common stock. An investor will offer a company cash in exchange for a percentage of the company, but with a catch: The investor wants a guarantee that the investment’s value won’t fall (or won’t fall much). … [ Read more ]
Content: Article | Author: Cory Johnson | Source: “The Standard” | Subject: Finance | Industry: Finance / Banking