Convertible corporate bonds traded separately shall apply for listing on the stock exchange where the listed company's shares are listed.
Stock options in separately traded corporate bonds and convertible corporate bonds shall be listed and traded separately if they meet the listing requirements of stock exchanges.
The biggest advantage of separating convertible bonds is "secondary financing".
When bonds are issued separately, investors need to subscribe for bonds; And if investors exercise their rights (when the warrants expire, the company's share price is higher than the exercise price), they will subscribe for shares again. Moreover, due to the warrant part, the coupon rate of the bond part of the bond can be much lower than that of ordinary convertible bonds, that is, its overall financing cost is quite low.
The impact on the stock can be said to be negative. First, the listing of convertible bonds gives buyers the right to carry out arbitrage trading when the high price is beneficial to them, that is to say, after converting bonds into stocks, they are sold in the secondary market, which increases the buying pressure and leads to the weak rebound of stock prices.
Warrant concept
Warrant refers to the securities issued by the issuer of the index or a third party other than it, and the agreed holder has the right to buy or sell the underlying securities from the issuer at the agreed price within a specific period or a specific maturity date, or to collect the securities with the settlement difference by cash settlement.
The essence of warrants reflects the contractual relationship between the issuer and the holder. After paying a certain amount of money to the warrant issuer, the holder obtains a right from the issuer. This right enables the holder to buy/sell a certain amount of assets from the warrant issuer at an agreed price on a specific date or within a specific period in the future. The warrants for buying stocks are called call warrants, and the warrants for selling stocks are called put warrants (or put warrants). Warrants are divided into European warrants and American warrants. The so-called European warrants are warrants that can only be exercised on the due date. The so-called American warrants are warrants that can be exercised at any time before the expiration date. The holder obtains a right rather than a responsibility, and has the right to decide whether to perform the contract, while the issuer only has the obligation to be executed, so in order to obtain this right, investors need to pay a certain price (royalties). The difference between warrants (in fact, all options) and forwards or futures is that the former holder is not a responsibility, but a right, while the latter holder is responsible for executing the sales contract signed by both parties, that is, the relevant assets must be traded at the specified price and the specified future time.
In other words, only in (exercise price+warrant price) * exercise ratio >; When the stock price is positive, you will arbitrage by exercising.
The normal profit of capital in the market is realized by buying low and selling high.