What is a convertible bond and what is a convertible bond

The full name of convertible bonds is convertible corporate bonds, it belongs to a kind of bonds, but convertible bonds are much more complicated than ordinary bonds, investors can choose to hold the convertible bonds in their hands to maturity, then the convertible bonds in this case are equivalent to an ordinary bond, the reason why it is called convertible bonds, is because investors can convert the convertible bonds in their hands into the company according to the predetermined conditions, in this case, the investor will change from the holder of the convertible bond to the company's shareholder, the higher the company's stock price. Then the more the investor will get the profit.

Convertible bonds are called convertible corporate bonds. In the current domestic market, it refers to bonds that can be converted into corporate ** under certain conditions. Convertible bonds have the dual attributes of debt and options, and their holders can choose to hold the bonds at maturity and obtain the company's repayment of principal and interest; You can also choose to convert to ** within an agreed period of time to enjoy dividend distribution or capital appreciation.

Therefore, the investment community generally jokes that convertible bonds are the guarantee of principal for investors.

A convertible bond is a bond in which the bondholder can convert the bond into an ordinary bond of the company as agreed at the time of issuance.

Convertible bonds are bonds that can be converted into corporate bonds.

What is a convertible bond and the risks of a convertible bond.

The full name of convertible bonds is convertible corporate bonds, referred to as "convertible bonds" or "convertible bonds". As the name suggests, it is first a bond, which in turn can be converted into a company**. To put it simply, a convertible bond is a bond that can be converted into **.

That is to say, convertible bonds, first of all, are bonds with low-risk functions, and secondly, the additional function is that they can be converted into corresponding **.

Convertible bonds refer to the bonds that the bondholders have converted into the company's common stock bonds according to the agreement at the time of issuance. Convertible bonds have existed as early as 1996, and convertible bonds have a good combination of the three characteristics of creditor's rights, equity and convertibility, making convertible bonds more flexible and broadening the financing channels of listed companies.

Risks to be aware of when investing in convertible bonds.

1. Investors of convertible bonds must be prepared for frequent fluctuations in stock prices, because the issuance of convertible bonds is originally sold to issuers in accordance with the established issuance, and the stock price fluctuates greatly;

2. Risk of interest loss: Once the stock price is below the conversion price, it is likely to cause convertible bond investors to become bond investors. Therefore, convertible bonds fluctuate greatly, and the interest rate will be lower than that of ordinary bonds of the same grade, which can easily bring interest losses to investors;

3. Risk of early redemption: After the issuance of convertible bonds, if the stock price is very high for a period of time and the mandatory redemption clause is triggered, then the listed company has the right to redeem all or part of the convertible bonds that have not been converted into ** at a rate slightly higher than the face value of the convertible bonds. Once redeemed early, it limits the maximum yield that investors can receive.

Convertible bonds, also known as convertible corporate bonds, are bonds in which bondholders can convert bonds into ordinary bonds of the company according to the agreement at the time of issuance, which is a hybrid form of bonds. The role of convertible bonds is that when investors do not understand the development potential and prospects of the issuing company, they can invest in convertible bonds first, and when the issuing company's operating performance is significant, the business prospects are optimistic and its market is bullish, the convertible bonds will be converted into convertible bonds and make a profit.

The types of convertible bonds include: domestic convertible bonds, which are bonds issued domestically and denominated in local currency; Foreign convertible bonds, which are bonds issued by domestic issuers onshore or offshore; A European convertible bond is a convertible bond denominated in European currency issued in more than one country at the same time.

A convertible bond is a bond in which the bondholder can convert the bond into an ordinary bond of the company as agreed at the time of issuance. Consult convertible bonds, recommend Guojin**, Guojin Commission Bao is the first batch of "1+1+1" Internet service products in the industry, providing convenient trading, financial management, investment advisory services, etc. [Welcome to click to learn more].

Convertible bonds, also known as convertible corporate bonds, belong to a hybrid form of bonds, and convertible bonds are characterized by creditor's rights, equity, and convertibility. The interest rate of the bond is generally lower than the interest rate of the bond of an ordinary company, and its holder also enjoys the right to sell the bond back to the issuer under certain conditions, and the issuer has the right to forcibly redeem the bond under certain conditions. When a convertible bond loses its convertible meaning, it is a low-interest bond that still has a fixed interest income.

If the conversion is realized, the investor will receive income from ** common shares or receive dividend income.

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Convertible bonds generally refer to convertible bonds, which are bonds in which the bondholders can convert the bonds into the company's ordinary bonds according to the agreement at the time of issuance.

If the bondholder does not want to convert, they can continue to hold the bond until the repayment period expires to receive the principal and interest, or liquidate it in the liquid market**. If the holder is optimistic about the potential of the bond issuer to increase its value, he or she can exercise the right to convert the bond into ** according to the predetermined conversion after the grace period, and the bond issuer shall not refuse.

The interest rate of the bond is generally lower than the interest rate of the bond of ordinary companies, and the issuance of convertible bonds by enterprises can reduce the cost of financing. Holders of convertible bonds also have the right to sell the bonds back to the issuer under certain conditions, and the issuer has the right to forcibly redeem the bonds under certain conditions.

Key Benefits:

Since convertible bonds can be converted into **, it compensates for the low interest rate. If the market price of ** exceeds its conversion during the convertible period of the bond, the holder of the bond can convert the bond into ** and obtain a larger return. In addition to the interest rate of the convertible bond, the most important thing that affects the yield of the convertible bond is the conversion condition of the convertible bond, which is commonly known as the exchange of shares**, that is, the face value of the convertible bond required to convert into one share**.

For example, the face value of each transfer bond is 1 yuan, and every 25 transfer bonds can be converted into one share**, and the exchange of shares for the transfer of bonds is 25 yuan, and the net assets per share of Baoan ** do not exceed 4 yuan, so the transfer conditions of Baoan transfer bonds are quite high.

When the market price of the convertible bond reaches or exceeds the conversion of the convertible bond, the convertible bond will be linked with the conversion of the bond, and when the market price of the convertible bond reaches or exceeds the conversion of the bond, due to the linkage of the conversion of the bond and the conversion of the bond, the rate of return of the purchase of the convertible bond and the investment is the same, but in the ******, because the convertible bond has the guaranteed nature of the general bond, the risk of the transfer is much smaller than that of the bond.

For friends who enter ** in order to obtain additional income, although ** has high returns, the risk is also very high, although the safety of the deposit bank has been guaranteed, but it has lost a lot of interest. Are there any investment targets with relatively low risk and high returns? Yes, you might as well consider convertible bonds.

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2. How to buy and sell convertible bonds? How do I transfer shares?

a) How to buy and sell.

1. Participate in the issuance.

When you hold the corresponding ** of the bond, you can qualify for preferential placement in this case; If you don't hold shares, you can only participate in the subscription and new listing, and only if you win the lottery will you be eligible**. If you want to sell preferential allotment and subscribe for IPO, you need to wait until after the bond is listed.

2. Post-listing participation.

There is no difference from the ** trading operation, the same as the stock price, and the ** of the convertible bond is also subject to change at any time, that is, the 1 lot of the convertible bond is fixed at 10, and it follows the operation mode of T+0 trading, that is to say, the investor's trading is not restricted.

2) How to transfer shares.

The transfer of shares can only be made during the transfer period. As far as the current market situation is concerned, the convertible bond conversion period of the transaction is generally six months after the end of the issuance to the maturity date of the convertible bond, and you can convert the shares for free on any trading day during the period.

3. What is the relationship between convertible bonds?

There is a strong correlation between the convertible bond and the stock price, and in the bull market, the convertible bond will rise with the bull market, and it will fall together if it is in a bear market. Compared with **, convertible bonds are less risky, after all, convertible bonds have the income of resale and bonds. I advise you not to blindly start with convertible bonds, or to pay attention to the trend of **, if because of time, there is no way to study a certain **, this link may be able to help you, enter what you want to know, and conduct in-depth analysis:

Free to test your current valuation position?

What does convertible debt mean and how to trade.

There is a special type of bond called a convertible bond, referred to as a convertible bond, is a type of bond. It is called a convertible bond, which naturally refers to a bond that can be converted into **, and the conversion ratio will generally be determined at the time of issuance. Convertible bonds usually have a lower coupon rate, which can be converted into ** to compensate for the lower coupon rate.

Investors will only convert to a higher value if they can convert to; If ** is ** and is at a low level, then the investor will not convert to **.

Convertible bonds have two characteristicsIt has the general characteristics of a bond, and can be converted into the characteristics of **have**. Once the bond is converted into **, it will have an impact on the company's shareholding structure and will also affect the share price in the secondary market.

The advantage of the financier in issuing convertible bonds is that the interest rate of convertible bonds is low, which can reduce the company's interest expenses and indirectly reduce the company's burden. But if the bonds are converted, the equity of the company's shareholders will be diluted. It also has an impact on stock prices in the secondary market.

However, it makes up for the lack of low interest rates, and in a word, it is a financing means to reduce the burden on enterprises.

If the market price of ** exceeds its conversion during the convertible period of the bond, the holder of the bond will spontaneously choose to exchange the bond for ** to sell for profit. In addition to the fixed interest rate of the bond, the most critical aspect of the convertible bond income is the exchange condition of the convertible bond, that is, the exchange of shares**. Not all situations are suitable for converting to **.

When the market price of the convertible bond reaches or exceeds the conversion of the convertible bond, the convertible bond will be linked with the stock exchange, and the stock price and bond will also be linked. However, at the time of ******, because the convertible bond has the guaranteed nature of a general bond, the risk of the convertible bond is much smaller than that of **.

The above is commonly referred to as the convertible bond in the market, as for its conversion ratio, method, time and validity period, the specific will be specified at the time of issuance.

The full name of convertible bonds is convertible corporate bonds, and by definition, convertible corporate bonds are bonds that can be converted into corporate ** during the conversion period in accordance with the pre-agreed conditions. It allows companies to raise funds at a lower cost and gives investors an additional investment vehicle.

It is a kind of bond that can be converted into ** after a certain period.