1. What is convertible bond?

If listed companies are short of funds and want to borrow money from investors, issuing convertible bonds is a common financing method. The full name of convertible bonds is convertible corporate bonds, which means that they are not only bonds, but also convertible into stocks under certain conditions. In other words, the borrower has also become a shareholder, increasing profits.

For example, a listed company issues convertible bonds with a face value of 100 yuan. If 5 yuan is the conversion price, it can be converted into 20 shares later. If the stock rises to 10 yuan in the later period, the money with the value of 100 yuan can be converted into convertible bonds.

Second, how to buy and sell convertible bonds? How to convert shares?

(1) How to buy and sell

1, participating at the time of publication

When you hold the stock corresponding to the bond, then you can get the qualification of priority placement; If you don't hold shares, you can only participate in subscription and innovation. If you don't win the lottery, you are not qualified to buy it. Priority placement and subscription can only be given after the bonds are listed.

2. Post-listing participation

The process of stock trading is the same as that of stock trading, and the price of convertible bonds is the same as that of stocks. The convertible bonds with only 1 lot are only 10, and they are conducted in accordance with the T+0 trading system, which means that investors are not restricted in buying and selling.

(b) How to convert shares

The conversion is specified during the conversion period. At present, the conversion period of convertible bonds traded in the market is generally six months from the end of issuance to the maturity date of convertible bonds, and then convertible bonds can be converted for free on any trading day during this period.

3. What is the relationship between convertible bond price and stock price?

The price of convertible bonds is closely related to the stock price. When the stock market is in a bull market, the price of convertible bonds will rise with the stock and fall with the bear market. Compared with stocks, the risk of convertible bonds is obviously much smaller. After all, convertible bonds are guaranteed by bonds and resale.