Share conversion and resale refers to the repurchase of issued convertible bonds by listed companies. There are two kinds of repurchase of convertible bonds, one is that shareholders can entrust them to sell all or part of the convertible bonds within the prescribed time limit, and the other is that listed companies force them to sell them back.
Among the above two kinds of resale, the former is to protect investors, that is, when the stock price is lower than the conversion price within a certain period of time, investors can ask listed companies to repurchase convertible bonds at face value plus certain interest; The latter is to protect the interests of listed companies. For example, within 30 trading days, as long as the stock price is greater than 130% of the conversion price within 5 trading days, the issuer can redeem the convertible bonds at a certain price.
When investing in convertible bonds, we need to pay attention to the risk of forced resale of convertible bonds of listed companies.