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QUALCOMM Incorporated Message Board

nameofthegame777 2 posts  |  Last Activity: Jun 20, 2014 5:18 PM Member since: Apr 13, 2011
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    Report suspected securities FRAUD to SEC:

    by bclark49548 Jun 20, 2014 2:43 PM
    nameofthegame777 nameofthegame777 Jun 20, 2014 5:18 PM Flag

    The term Death Spiral funding is a term used to describe a convertible security that converts at a discount to the market price at the time of conversion, but HAS NO FLOOR PRICE PROTECTION.

    This type of funding is also referred to as a toxic convertible or floorless convertible since the investor can keep converting below the market which in many instances can greatly dilute the companies shareholders and continually drive the price of the shares down.

    The lack of a floor price on a convertible security is a very risky way for a company to raise capital. Small companies that cannot otherwise raise capital sometimes have no funding options available to them and there only option, as a last resort, is to accept a death spiral convertible funding structure.

    There are exceptions or a few scenarios to why a company would do toxic convertible funding.

    Do your own due diligence reviewing all SEC filings, don't relieve on the company press releases or place much value in services that are being paid to promote a company's story

  • nameofthegame777 nameofthegame777 Jun 19, 2014 5:04 PM Flag

    Just another classic example of what toxic money can do to public shareholders equity investment -

    The average shareholder, who is typically not involved in the day-to-day operations of the company, relies on several parties to protect / further his / her interests. These parties include the employees, its executives and its board of directors. However, each one of these parties has its own interests, which may conflict with those of the shareholder.

    The board of directors is elected by the shareholders of a corporation to oversee and govern management and to make corporate decisions on their behalf. As a result, the board is directly responsible for protecting and managing shareholders' interests in the company. If that was the case toxic financing would not be tolerated by the members of the board.

    For a board of directors to be truly effective, it needs to be objective and proactive in its policies and dealings with management. This helps to ensure that management is generating shareholder value. A more objective board of directors, or one that is separate from a company's management, is more likely to promote or protect the interests of the company's shareholders. For example, a board of directors made up entirely or primarily of management would clearly be hampered by conflicts of interest, and the preservation of shareholder value might not be a priority.

    Although the average shareholder does not have control over the board of directors or the day-to-day operations of the company, the ultimate responsibility for the protection of shareholder value lies with each individual investor. The investor is ultimately responsible for reviewing corporate policy and governance as well as for the compensation of managers.

    Final point, its still possible to regain investors confidence, but again that takes a degree skill in managing a turn around

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