Is convertible bonds converted into shares at market price or par price?
According to the par value, that is, according to the issue price of convertible bonds, that is, the price of 100 yuan, the par value of convertible bonds at the time of issuance is 100 yuan. The market price of convertible bonds refers to the transaction price of convertible bonds, which is often different from its par value. Its market price may be lower or higher than its face price, and the face price is fixed.
The face value of convertible bonds is generally 100 yuan, and the number of shares converted (shares) = the number of convertible bonds × 100÷ conversion price. Convertible bonds bought on the same day can be converted into shares on the same day, and convertible bonds need to apply for conversion within the trading time. The converted shares will reach the account at T+ 1 and can be sold on the same day.
Convertible bonds can be traded normally after listing, or converted into shares after a certain period of time. Generally, six months after the issuance of convertible corporate bonds, bondholders can apply for conversion into corporate stocks by offer at 9:25- 15:00 on the normal trading day of the conversion period, and the stocks can be traded in the secondary market after they are received. Please pay attention to the announcement separately for the specific bond conversion time and conversion price.
Is it cost-effective to sell convertible bonds into shares?
It depends on the converted value and its market price. Investors can compare the converted value with the selling value of convertible bonds. If the converted value is greater than the sold value, the conversion is cost-effective. However, the prices of stocks and convertible bonds are constantly changing. Please weigh how to operate.
Convertible bonds have a maturity, usually within six years. If it is not sold or converted into shares during this period, the company will pay the principal and interest to the holder after maturity.