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Death Spiral

   Also found in: Wikipedia 0.01 sec.
Death Spiral
A loan that investors give to a publicly-traded company in exchange for convertible bonds. The convertible bonds give the investor a right to buy shares in the company at a low, agreed-upon price. However, issuing these bonds creates more shares outstanding when they are converted, which results in a drop in the share price. The low share price encourages more bondholders to convert their bonds to equity, which causes a further drop in price and the process continues. Because of this disadvantage, companies only engage in death spirals if they badly need cash.

death spiral
The deteriorating financial condition and associated stock price of a cash-starved company that can raise capital only under the most onerous of terms. Restrictions and high interest charges on new capital cause the company to end up in an even worse financial position.


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The proposals have the potential to push the economy into a death spiral of decline.
The most important way to beat the death spiral is to be aware of it and to act on it sooner rather than later.
Revenge for an upset, revenge for the first of many losses, revenge for the downward spiral that became a death spiral for their former coach, Phillip Fulmer, who was fired at the end of a 5-7 season last year.
 
 
 
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