Convertible bonds are bonds that bondholders can convert into common shares of the company at the agreed price at the time of issuance. If the bondholders do not want to convert shares, they can continue to hold the bonds until the repayment period expires to collect the principal and interest, or they can be sold and realized in the circulation market.

If the holder is optimistic about the appreciation potential of the issuing company's shares, he may exercise the right to convert the bonds into shares at a predetermined conversion price after the grace period, and the issuing company shall not refuse.

Extended data:

Precautions:

1, in strict accordance with the trend of its corresponding stocks.

2. On the basis of studying individual stocks, choose convertible bonds.

3. Never touch the convertible bonds that seriously deviate from the value.

4. Heavy positions and small positions cannot be operated.

5. The number of operations should not be too frequent. Generally, it goes back and forth at 1-2 in the morning and 1-2 in the afternoon.

6. Set a stop loss. Once contrary to your own prediction, don't take any chances. Stop loss within 2 points.

7. For convertible bonds with excessive fluctuations, don't stay overnight, especially on weekends.

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People's Network-Five Points to Pay Attention to when Investing in Convertible Bonds Fund