Floorless Convertible

Floorless convertibles, sometimes called “death spiral” financing, let lenders convert debt to equity at a floating discount with no floor. When price declines, more shares are issued, crushing existing holders.

“The essence of investment management is the management of risks, not the management of returns.” — Benjamin Graham

Red flags: - Reset provisions tied to lowest VWAP over short windows. - Large registration statements filed soon after issuance. - Rising share count with falling price in [Share-Changes table](/share-changes).