Is convertible bonds good or bad?

the issuance of convertible bonds by a company has little impact on the stock, which is neither positive nor negative, and will not affect the stock trend. Convertible bonds are a way of financing for listed companies, and the funds after financing can be used as the daily production and operation of enterprises. It is also possible that listed companies think that the current share price is undervalued and it is not cost-effective to issue convertible bonds directly.

convertible bonds are bonds that bondholders can convert into common shares of the company at the price agreed at the time of issuance. If the bondholders do not want to convert, they can continue to hold the bonds until the repayment period expires to collect the principal and interest, or sell them in the circulation market for realization. If the holder is optimistic about the stock appreciation potential of the issuing company, he can exercise the conversion right after the grace period and convert the bonds into stocks at the predetermined conversion price, and the issuing company shall not refuse. The interest rate of this bond is generally lower than that of ordinary companies, and the issuance of convertible bonds by enterprises can reduce the financing cost. Convertible bondholders also have the right to sell bonds back to issuers under certain conditions, and issuers have the right to redeem bonds under certain conditions.

Convertible bonds refer to bonds that the holders can convert into a certain number of other securities at a certain proportion or price within a certain period of time.

convertible bonds are short for convertible corporate bonds, also called convertible bonds. They are special corporate bonds that can be converted into common stocks at a specific time and under specific conditions. Convertible bonds have the characteristics of both creditor's rights and equity.

English for convertible bonds is: convertible bond (or convertible debt, convertible note). Bonds with conversion characteristics issued by companies. In the prospectus, the issuer promises to convert the bonds into common shares of the company within a certain period of time according to the conversion price. The conversion feature is an obligation of the bonds issued by the company. The advantages of convertible bonds are the fixed income that ordinary shares do not have and the appreciation potential that ordinary bonds do not have.

Convertible bonds are pure bonds before being converted into stocks, but after being converted into stocks, the original bondholders become shareholders of the company from creditors, and can participate in the business decision-making and dividend distribution of the company, which will also affect the company's share capital structure to a certain extent.

Like other bonds, convertible bonds have stipulated interest rates and maturities, and investors can choose to hold the bonds at maturity and collect the principal and interest.