What Is Convertible Loan Stock?

Convertible stock: Holders can use it to convert common shares, preferred shares or other bonds of the same company

Convertible stock

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Convertible stock: Holders can use it to convert

Convertible stock: Holders can use it to convert

The so-called priority convertible shares generally, the priority of the preference shares has the following four points: 1. When distributing company profits,

The issuance of convertible preferred stocks has certain significance for both joint stock companies and investors.

1. When a stock company encounters difficulties in issuing shares, it can give priority stock subscribers a conversion request to attract more people to buy. At the same time, the dividend yield of convertible preferred stocks is often slightly lower than other types of preferred stocks, which also helps to reduce the burden on companies.

2. Investors invest in convertible preferred stocks, and actually have an opportunity to choose and change the type of assets. For example, after the investor subscribes for this type of stock, when the company has less profit, he can not exercise the conversion request right and continue to hold preferred stock to ensure a fixed dividend; when the company's profit is high, he can exercise the conversion request Convert into ordinary stocks to share generous profits.