1. Convertible bonds can be converted into shares when they meet the conditions, which is the biggest difference between them and ordinary bonds;
2. Convertible bonds have the characteristics of bonds, and they can earn interest when they are held at maturity:
3. Convertible bonds are quite different from stocks in trading system.
In recent two years, convertible bonds have become the focus of attention. Last year, the convertible bond market made many people realize the freedom of wealth, and the status of convertible bonds in the eyes of investors rose rapidly. Convertible bonds have also become a paradise for many short-term traders. Convertible bonds are not ordinary bonds, but have the dual nature of bonds and stocks. If the requirements of the agreement are met, convertible bonds can be converted into shares, and at the same time, convertible bonds can enjoy the agreed interest at maturity, which makes the operation of convertible bonds very flexible, which is also the advantage of convertible bonds.
First, convertible bonds have the dual attributes of bonds and stocks.
Convertible bond is a new financing method for listed companies. This way can give listed companies more choices. They can redeem convertible bonds in advance, or they can let investors convert them into shares. The flexibility of convertible bonds is welcomed by many investors.
Convertible bonds have the dual attributes of bonds and stocks, which are mainly reflected in:
1. When held at maturity, you can get the agreed interest like ordinary bonds;
2. Convertible bonds are more active than ordinary bonds, which makes them have the attributes of stocks.
Two, convertible bonds and stocks are very different in the trading system.
Convertible bonds are T+0 transactions, and the number of transactions on the same day is unlimited, and there is no stamp duty; The stock trading is T+ 1, and it cannot be sold after buying on the same day. The state will levy stamp duty.
From the perspective of transaction costs, convertible bonds have lower handling fees and are more popular with high-frequency short-term investors.
3. What is the biggest risk of convertible bonds?
The biggest risk of convertible bonds is redemption. If the convertible bonds are hyped at a high level, the company is prepared to redeem the convertible bonds in advance, and the price of the convertible bonds will drop sharply.
When operating convertible bonds, we must pay attention to the redemption terms of the company. As long as the redemption conditions are triggered, it is possible for listed companies to redeem convertible bonds. If the convertible bonds are at a high level, the losses are basically very large, which must be noted.