Shares of furniture e-commerce company Wayfair (NYSE: W) plunged 38.2% in September, according to data provided by S&P Global Market Intelligence. Investors didn't like the terms of the company's new financing arrangement. And with the market and the economy struggling, investors fear recently strained financial results could worsen. 

Wayfair stock moved little during the first week of September. The company proposed raising $600 million through convertible senior notes on Sept. 7, and again the stock held steady. But on Sept. 9, it disclosed the terms for these notes, and the stock started falling.

Wayfair's notes come with a 3.25% interest rate. For perspective, the company issued convertible notes in 2017, 2018, 2019, and 2020 with rates ranging from 0.375% to 1.125%. So the interest rate on the latest offering is quite a jump. However, it's not unique to Wayfair; that's just how it works when the Federal Reserve is raising interest rates.

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Source Fool.com