1. Convertible bonds can only be converted into shares within the conversion period.

The conversion period of convertible bonds currently traded in the market is generally six months from the end of the issuance of the convertible bonds to the maturity date of the convertible bonds.

Shares can be converted on any trading day during the period.

2. There is no fee for converting convertible bonds into stocks, so there is no need to prepare excess funds in your account for stock conversion.

. Pay special attention to the fact that convertible bonds generally have early redemption clauses.

Investors holding convertible bonds should pay close attention to this. When the company issues a redemption announcement, they must promptly convert shares or sell convertible bonds directly, otherwise they may suffer huge losses.

Because companies generally only redeem all unconverted bonds by a very small amount (generally no more than 105 yuan) above the face value, and convertible bonds that meet the redemption conditions are generally more than 130 yuan, and some are even as high as more than 200 yuan!

In the Shanghai Electric Power Convertible Bonds in August 2007, investors including three fund companies failed to convert shares in time, resulting in a total loss of more than 20 million yuan!

4. The total face value of the convertible bonds applied for conversion must be an integral multiple of 1,000 yuan.

The final number of shares obtained after applying for share conversion is an integer share. When the fraction is less than 1 share, the company will redeem it in cash within 5 trading days after the share conversion date.

The redemption amount is the number of shares after the decimal point multiplied by the conversion price. For example, if there are 0.88 shares left and the conversion price is 5 yuan, then the redemption amount is 0.88*5=4.4 yuan.