What does CB mean?
Xiaobian for you to answer!
There is a term called equity convertible bond, this stock term is interpreted as a special corporate bond that can be converted into notes at a specific time and according to specific conditions.
It’s short for convertible corporate bond, which is a combination of a bond and.
As a kind of low interest bond, equity convertible bond has fixed interest income. Investors can obtain the income or income from selling common stock by realizing the conversion.
The biggest advantage of equity convertible bond is that it combines the advantages of stocks and bonds, the long-term growth potential of stocks and the security and fixed income of bonds.
Investment activity is a kind of risk, since the stock bonds is a kind of investment, it is not exceptional also have risks, to invest stock bond investors want to assume the risk of share price volatility, the impact of stock price fluctuation of rotating debt is great, a direct impact on the investors’ benefits, at the same time the interest the risk of loss is big, we all know that the interest rate on the impact of how vast,
When the stock price falls below the conversion price, convertible bond investors will be forced to turn into bond investors. The interest rate of equity convertible bonds is lower than that of ordinary bonds of the same level, so investors will suffer losses.
Investors in the stock bonds must choose good investment strategy, stock selection skills are very important, in the market situation is good, the bond that along with the market price rises, when up to than its cost, is to sell bonds, direct opportunity to earn profits, but if the market shows weakness, stock bonds and distribution companies are falling,
The calculation results are not optimistic, and it is not cost-effective to sell the equity convertible bond or the convertible bond into the stock, so investors can choose to obtain the fixed interest at maturity as the bond.
If the stock market returns strong or the company’s performance is optimistic, the stock price rises, investors can convert the CB into stocks.
The above is the content of “what is the meaning of stock convertible bond” introduced by Jintou stock network. For more knowledge about “what is the meaning of stock convertible bond”, please pay attention to Jintou stock network!