The transaction cost of convertible bonds is mainly transaction commission and handling fee (basically ranging from 1 to 1 yuan according to the fees charged by different securities companies), and stamp duty is also charged for stock transactions (the current policy stipulates that the transaction commission is not allowed to be exempted from 5 yuan, that is, the minimum commission rate is 5 yuan, and the stamp duty that the state stipulates must be paid is calculated at one thousandth of the transaction amount). Convertible bonds have no price limit. As long as the market allows prices to rise or fall, it is possible. However, China has restrictions on stock trading. The daily limit of Shanghai and Shenzhen main boards is 10%, and the daily limit of Growth Enterprise Market and science and technology innovation board is 20%.

Stock trading is T 1 trading. However, convertible bonds can be traded on the same day, that is, T 0 trading. Investment threshold. The minimum buying unit of convertible bonds is 1 lot, and the quantity of 1 lot is 10. At the time of issuance, the face value of the bonds is 100 yuan. The corresponding minimum purchase amount is 1000 yuan. The expected interest income of convertible bonds is generally lower than other bond varieties, and the annual interest rate is generally lower than 2%. Therefore, expected interest income is usually not the main profit source of convertible bonds. However, the expected return on stock investment is uncertain. Generally speaking, stock losses are higher than convertible bonds.

Convertible bonds are flexible, can be bought and sold, and can be converted into stocks. There are guaranteed interest and expected income, and the investment risk is moderate, and ordinary investors can also participate. Stocks are typical high-risk investments, and investors with weak risk tolerance should not buy them. When an enterprise goes bankrupt, the repayment order of creditor's rights takes precedence over stocks. Learn fund investment first! My fund earned 20% this year, but I still dare not play with stocks, because the market has been in a bear market and it is still safe!

Having said so many benefits, I believe you should have a good answer to convertible bonds relative to stocks. In short, buy low-priced convertible bonds and wait for strong redemption. Historically, most convertible bonds have completed the mission of strong redemption. Weak redemption means that listed companies pay back the money, which is the result of failure. The best result is to complete the strong redemption and investors can make money. Holding convertible bonds has patience and low price, and can't chase high-priced convertible bonds with high premium rate.