What debt to equity is. Googled it. - interesting Posted: Sep 8th, 2018 - 5:49 pm In Reply to: this is just as disturbing - Izopen
What it is - exchange debt for stock (or bonds or other financial instrument). Sounds like sorta printing more money. Wipes out debt by getting money by selling more stock. Makes the shares of stock worth less because there is more.
Exchange of debt for stock can be done because the company is in trouble, or they need to clean up some debt to make their credit rating look better so they can get more money. More information in the link.
It appears there is a need for more money to either look good as far as debt ratio, or get more money, or they are in some doo doo.
LINK/URL: What debt to equity is. Googled it.
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