Can death spiral influence on shareholders to lose control of the company?
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rudolfo
Apprentice
Joined: 23 Nov 2005
Posts: 2
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 Posted: 08/02/08 - 05:49 Post subject: |
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I have started a business and I expect to get a pretty good profit from it. I will be mostly in trading and there has been some talk about so called death spiral. I would like to know can death spiral influence on shareholders to lose control of the company. If anyone could help me regarding that matter, it would be great.
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hube
Apprentice
Joined: 24 May 2006
Posts: 3
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| Posted: 09/01/08 - 03:12 Post subject: |
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| Taking a loan is great, as it is one very flexible type of loan and the calculations related to it are relatively easy. It is very common for buying domestic properties, too. In any case, loans represent risk for both you and the lender whose money is on the line. If you have a good credit history you will be considered less as a liability. Unfortunately, death spiral is not of the overly favorable loans. Even though it may initially be good a deal, but if your business lags more, you will need to take even more of such loans, which may indeed influence shareholders negatively. For more info, go to http://www.investopedia.com/terms/d/deathspiral.asp |
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