Convertible bond is a kind of bond, the full name of which is convertible corporate bond. This bond can be converted into the shares of the bond issuing company, but its coupon rate is very low. Convertible bonds have the dual characteristics of bonds and stocks. The holders of convertible bonds can choose to get the principal and interest at the maturity of the bonds, or they can choose to convert the bonds into stocks within the agreed time, so as to obtain dividend eligibility or capital appreciation opportunities.

Is convertible bonds good or bad?

1. For individual investors. It is beneficial for the holder to hold convertible bonds. Holders of convertible bonds can choose to obtain principal and interest at maturity or convert bonds into stocks within the agreed time according to the size of interests, so as to obtain dividend eligibility and capital appreciation opportunities.

2. for the company In the trend of convertible bonds, it can be regarded as warrants. Generally speaking, the trend of warrants is ahead of stocks. There are relatively many terms of convertible bonds, including interest rate terms, redemption terms and conversion terms. Generally speaking, convertible bonds are beneficial to the overall operation of the company, but generally will not affect the company's relatively large fundamentals.

I believe everyone has a clear understanding of convertible bonds. Convertible bonds are good or bad, mainly from the above two aspects, namely convertible bond holders and convertible bond issuing companies. Although the research is different, they all have the same result, that is, convertible bonds are beneficial to both holders and company operations.

Good news means bringing good news, which can stimulate the stock market or financial market to rise, while bad news means bringing bad factors to the stock market or financial market, which leads to the decline of financial products such as stocks. The positive and negative factors are as follows:

Good news: the state implements a loose monetary policy, reduces the interest rate of bank deposits and loans, and the listed companies are in good operating condition. Dividends, buybacks, restructuring and other factors will make the stock market better, stimulate news, and have a high profit-making effect on investors.

Bad news: the country implements a tight monetary policy, raises interest rates, the external stock market is hit hard, the company's operation deteriorates after listing, and a major financial crisis occurs, which will lead to a negative decline in the stock price, leading to panic selling, and the profit-making effect of investors is greatly reduced.

Other political, economic, military and diplomatic aspects are good or bad for the financial market. When investing in the financial market, investors should pay attention to all aspects of bad information and avoid stepping on thunder.