4 ms·
a lot of founders also owe banks money tied to the value of their equity posiitons. As stock price goes down, they are incentivized to either pledge more stock
by htrp 4y ago
a lot of founders also owe banks money tied to the value of their equity posiitons.
As stock price goes down, they are incentivized to either pledge more stock, have their collateral liquidated, or take actions to move the stock price back up.