If individuals have no investment experience, it is best to participate in the innovation of convertible bonds. This is an investment that will hardly lead to losses and is very friendly to novices. The data shows that the first-day break rate of convertible bonds listed last month is 0%, and the average income is as high as 18.03%. It is a special bond issued by a listed company. Unlike simple bonds, such bonds can be converted into company shares at an agreed price. Therefore, it is also a kind of bond, which has the property of stock. It is precisely because of these two attributes that investors can achieve "no loss".
When you hear about stocks, you will feel too risky, so don't worry. Assuming that the stock of the company issuing convertible bonds has fallen a lot, then we can choose not to convert the stock into bonds. After the expiration, the listed company will return a large amount of principal and interest. Convertible bonds trading is simply buying and selling convertible bonds that have been listed and circulated, and we can buy and sell them ourselves. However, convertible bonds cannot be bought directly in the market through matching and placing. Convertible bonds trading requires us to use certain investment strategies to earn the difference by buying low and selling high.
Companies that can issue convertible bonds must undergo strict examination. Of course, there is also the risk of bad debts. But I think, from the perspective of audit, the overall risk is relatively small. Pay attention to the top ten shareholders of the company. It is best that the top ten shareholders account for a relatively high proportion and there are more institutional investors, so that the amount of convertible bonds they hold is relatively high and the probability of breaking is relatively low. Pay attention to market trends and individual stock trends. By looking at the trend, we can roughly judge whether the stock is likely to fall sharply next month, or whether there will be a big price difference between the regular share price and the converted share price.