Скачать или смотреть How Debt Magically Turns Into Company Shares (Explained Simply)

Ever wondered how a struggling company can turn its massive debt into shares instead of going bankrupt? 🤔

It's called a debt-to-equity conversion (or debt-to-equity swap). Here's how it works in simple terms:

1. Company owes money (bonds or loans)
2. Can't pay it back easily
3. Agrees with lenders: "Cancel the debt... and we'll give you shares in the company instead"
4. Debt disappears from the balance sheet, but shareholders get diluted

This move helps companies survive tough times – it's been used by big names like Tesla in the past and many airlines during crises.

Great for the company... but existing shareholders own a smaller piece of the pie afterward.

Mind blown? Drop a 💡 in the comments if this is new to you!

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