The following is a definition...

The following is a definition from:

http://www.investors.com/Education/FinancialDictionary.aspx?Nr=AND(Dictionary+Subject:Financial+Theory,Dictionary+AlphaNumeric:D)&type=alphaNumeric&subject=Financial+Theory

Death Spiral

A type of loan investors lend to a company in exchange for convertible debt, which, like a convertible bond, typically has provisions that allow the investors to convert the bonds into stock at below-market prices. This can lead to the original shareholders losing control of the company.


Dargie's use of the term "Death Spiral" is correct BY DEFINITION.