The conversion price is the exclusive clause of convertible bonds. After the conversion period of convertible bonds ends, investors can convert convertible bonds into stocks at the conversion price. For example, if the conversion price is 10, but the stock price is 20 at this time, then the investor will earn 10 yuan after the conversion.
1. What is new debt?
Playing new bonds is to apply for newly issued convertible bonds. When convertible bonds were first issued, the price was relatively low, usually 100 yuan. At this time, investors' subscription for newly issued convertible bonds is called new debt. At the time of subscription, investors who can buy convertible bonds will be selected by lottery, which is called lottery. Investors who win the lottery buy at a price of 100 yuan, with little cost, and then sell at a high price on the day of listing, obtaining higher returns and hardly losing money. Playing new bonds is still new to many people. 2065438+On September 8, 2007, CSRC adjusted the subscription mode of convertible bonds from capital subscription to debt subscription. To put it bluntly, in the past, investors could only buy if there was a balance in their accounts. Now they can pay after winning the lottery, which is a great benefit for us ordinary investors. Because even if we don't have any money, I can apply for convertible bonds, and I won't pay until I win the lottery. There is no financial pressure. For enterprises, issuing convertible bonds is not easy, even quite strict. China's listed companies need financing, which can be divided into bond financing and equity financing. Bond financing includes bank loans, issuing bonds and notes payable, while equity financing includes allotment, public offering and non-public offering. According to the requirements of China's "Measures for the Administration of Securities Issuance of Listed Companies" for equity refinancing, there are many financing requirements for issuing convertible bonds, and the threshold is still high. In contrast, private placement has fewer constraints, so companies generally choose private placement.
2. What is convertible bond?
Convertible bonds, also known as convertible bonds, are bonds that bondholders convert into common shares of the company at the price agreed at the time of issuance. Generally speaking, the essence is bonds, which are money lent to companies. They are repaid by borrowing money and pay interest every year. However, convertible bonds can convert bonds into company shares. It is precisely because of this option that it can determine its rich income as the price of the stock rises.
3. The conversion price refers to the price after convertible bonds are converted into shares, that is, the price at the time of debt-to-equity swap. Convertible bonds are a kind of bonds issued by listed companies, similar to stocks. At the beginning, investors need to get it by subscription, and they can sell it after listing, or they can convert it into stocks at that time. General convertible bonds enter the conversion period after half a year of issuance. During this conversion period, you can sell the shares by conversion, or you can continue to hold them without conversion. When the company redeems, the redemption price is the share price that meets the agreed conditions. Companies can redeem convertible bonds. Investors can see the positive stock price and the conversion stock price in the trading software. If the positive share price is greater than the conversion share price, the holder will make a profit, and vice versa. For example, the conversion price is 10 yuan, and the current price is 12 yuan. Then you earn two yuan. On the contrary, if the stock price is only 8 yuan and the convertible bonds are 10 yuan, you will lose money.