Convertible bonds in digital currency sector
Convertible bond is a kind of bond that the bondholder can convert the bond into the company's common stock according to the agreed price at the time of issue. If the bondholders do not want to convert, they can continue to hold the bonds until the maturity of repayment, collect the principal and interest, or sell them in the circulation market for realization
if the holder is optimistic about the stock appreciation potential of the bond issuing company, he can exercise the conversion right after the grace period and convert the bond into stock according to the predetermined conversion price, and the bond issuing company shall not refuse
convertible bonds have the characteristics of both bonds and stocks, with the following three characteristics:
creditor's rights
like other bonds, convertible bonds also have specified interest rates and maturities, and investors can choose to hold bonds to maturity and charge principal and interest
equity
convertible bonds are pure bonds before they are converted into stocks, but after they are converted into stocks, the original bondholders become shareholders of the company from creditors, and can participate in the business decision-making and dividend distribution of the company, which will also affect the equity structure of the company to a certain extent
convertibility
convertibility is an important sign of convertible bonds, bondholders can convert bonds into stocks according to the agreed conditions. Equity conversion is an option that investors have but ordinary bonds do not have
There are some convertible bonds in stock software, which start with 11 in Shanghai Securities and 12 in Shenzhen securitiesfirst, convertible bonds can be directly purchased just like new shares. In the specific operation, input the code, price, quantity, etc. of the convertible bond, and then confirm. The face value of the convertible bonds is 100 yuan, and the minimum unit for subscription is one hand (10 pieces). Instry insiders said that e to the small amount of capital required for the first-hand purchase of convertible bonds, the number of allotments obtained is more, and the probability of the second-hand purchase is higher than that of the new shares
Secondly, in addition to direct subscription, investors obtain the right of first offer by purchasing the main shares in advance. Since the issuance of convertible bonds usually gives priority to the old shareholders, investors can buy the main shares before the equity registration date, and then exercise the right to place on the placement date to obtain the convertible bonds Thirdly, in the secondary market, investors can buy and sell convertible bonds as long as they have a stock account. The specific operation is similar to buying and selling stocks1. Click the flush icon in the main interface of the mobile phone to open the flush app
General stock trading software, such as flush, Oriental Wealth, etc., can find the convertible bonds issued by Chinese listed companies. Take the mobile phone flush as an example, the query method is as follows:
open the flush app, and click market - other - convertible bonds in turn (as shown in the figure below)<
convertible bonds have the same risk and the same quality as stocks; We should also pay attention to the premium rate and timing when debt to equity swap, and make prudent decisions when investing
1、 Query through the securities official website
1. Open your securities investment official website and find "bonds" at the top of the page
extended data:
convertible bond is called convertible bond, which originated in the United States in 1843. It refers to the corporate bonds issued by the issuer according to the legal proceres, which can be converted into shares within a certain period of time according to the agreed conditions
In other words, as a kind of corporate bonds, the investors have the right to convert convertible bonds into a certain number of common stocks of bond issuing companies (hereinafter referred to as benchmark stocks) according to a certain proportion and corresponding conditions within the specified periodtherefore, convertible bond is a kind of weighted bond, which contains the characteristics of ordinary bond and has a series of elements such as face value, interest rate, term, etc; It also includes the characteristics of equity, which can be converted into benchmark stock under certain conditions; At the same time, it also has the derivative characteristics of benchmark stock
However, investors will face the following risks:first, when the market price of the benchmark stock is higher than that of the convertible stock, the price of the convertible bond will rise with the rise of the stock price, but it will also fall with the fall of the stock price, and the holder will bear the risk of stock price fluctuation
Second, when the market price of the benchmark stock falls below the price of the conversion, the holder is forced to become a bond investor, because the conversion will bring more losses; The interest rate of convertible bonds is generally lower than that of ordinary bonds of the same grade, so it will bring the risk of interest loss to investors The third is the risk of early redemption, which stipulates that the issuer can redeem the bond at a certain price after a certain period of time; This not only limits the maximum yield of investors, but also brings investors reinvestment risk The fourth is the conversion risk. The conditional compulsory conversion within the bond ration also limits the maximum yield of investors, but it is generally higher than the yield of early redemption; And the unconditional compulsory conversion at maturity will make investors have no right to recover the principal, and can only bear the risk of stock decline