What are the benefits of convertible preferred shares?

Hello, convertible preferred shares refer to the option given by listed companies to the holder to convert preferred shares into common shares or another preferred stock according to a specific proportion, which is a form of existence of preferred shares of listed companies.

Advantages of Convertible Preferred Shares.

Convertible preferred shares can be conducive to the rich investment structure of the financial market, and also conducive to the adjustment of the equity capital structure of listed companies, thereby reducing the company's financial risk in disguise. It is also beneficial for investors to make different choices, so that investors have partial selectivity.

If ** is in a "bull market", the performance of the listed company and ** continues**, the common stock of the listed company ** is higher, and the investors who hold convertible preferred shares will make a higher profit through this method than the income of pure preferred stock after converting it into ** ordinary shares.

Risk Disclosure: This information does not constitute any investment advice, and investors should not use such information to replace their independent judgment or make decisions based solely on such information, does not constitute any buying and selling operations, and does not guarantee any returns. If you are doing it yourself, please pay attention to ** control and risk control.

There are two types of preferred shares: convertible preferred shares and non-convertible preferred shares, and convertible preferred shares refer to the preferred shares that can be exchanged for common shares of the company by preferred shareholders or issuers according to a certain conversion ratio within a specified period of time.

According to the "Guiding Opinions on Carrying out the Pilot Program of Preferred Shares".

4) Conversion and repurchase of preferred shares: The company may stipulate in the articles of association the conversion of preferred shares into ordinary shares, and the conditions, ** and proportion of the issuer's repurchase of preferred shares. The conversion option or repurchase option may be exercised by the issuer or preferred shareholder.

If the issuer requests to repurchase the preferred shares, it must pay the dividends owed in full, except for the commercial banks that issue preferred shares to supplement the capital, and the total number of preferred shares issued by the company shall be written down accordingly after the preferential shares are purchased early.

Features are different:Preferred shares compared to convertible bonds.

There is no fixed term and there may not be a conversion clause. Convertible bonds generally have a maturity of no more than 6 years, and their investors are bondholders before the conversion and ordinary shares after the transfer.

Shareholders in the voting rights of shareholders and profit distribution.

and the distribution of residual property is different from that of preferred stock investors.

Convertible bonds.

After exercising, the investor becomes a shareholder of the issuing company. In contrast to preferred shares, they have voting rights and participate in the company's decision-making. Preferred shareholders generally do not have the right to vote and to be elected, and do not have the right to vote on the major operations of the joint-stock company.

However, under certain circumstances, they may enjoy the right to vote.

Precautions for investing in convertible bonds.

2. Interest rate of convertible bonds: The lower the interest rate, the better the credit status of the listed company behind the convertible bond and the fundamentals of the convertible bond.

The better.

3. Maturity: The longer the maturity, the greater the possibility of appreciation of the underlying stock, and the greater the investment value of the convertible bond.

4. Conversion period: Conversion period, generally speaking, convertible bonds can only be converted into companies within 6 months after issuance.

Preferred shares are preferential**. Preferred shares refer to other types of shares other than the ordinary shares specified in the general provisions in accordance with the Company Law, and the holders of the shares have priority over the ordinary shareholders in the distribution of the company's profits and surplus property, but the rights to participate in the company's decision-making and management are restricted. In the event of liquidation of the company, the preferred shares are distributed before the common shares when the remaining property is distributed.

Preferred shareholders may have priority in distributing the company's profits over ordinary shareholders at the agreed coupon dividend rate. The Company shall pay dividends to preferred shareholders in cash and shall not distribute profits to ordinary shareholders until the agreed dividends have been paid in full.

Preferred shares usually pre-stipulate that the common shares guarantee the dividend yield of the preferred shares with their distributable dividends (for example, after the profit distribution of the common shares is reduced to 0, the preferred shares will not reach the dividend yield in terms of dividends).

Because the dividend yield of preferred shares is set in advance (in fact, it is the upper limit), the dividends of preferred shares generally do not increase or decrease according to the company's operating conditions, and generally cannot participate in the dividends of the company's remaining profits, nor do they enjoy the owner's equity other than their own **, such as insolvency, preferred shares will have losses.

It can be converted into one of the shares owned by the company, and preferred shares are very good, and the dividends are very high.

Under certain conditions, it is still necessary to allow the holder to convert to other types of **priority**.

It can be converted into another type of preferred stock and common stock.

It can be converted to other kinds of preferred**or ordinary**, and its conversion is also very convenient and selective.

A preference share transfer is a transfer of preference shares. For the transfer of preferred shares, the time for the National Equities Exchange and Quotations System to accept the declaration of the transfer of preferred shares is 9:15 to 11:00 on each transfer date

30, 13:00 to 15:00.

From 9:30 to 15:00 on each transfer day

00 is the transaction confirmation time for the conversion of preferred shares to cherry blossoms.

The preferred shares transferred in the national share transfer system can be declared in the following ways:

1. Pricing declaration. 2. Transaction confirmation declaration.

After the NEEQ receives the transaction confirmation declaration to be concluded with the pricing declaration, if there is no corresponding pricing declaration in the system, the transaction confirmation declaration will be processed as a cancellation order.