The difference between convertible bonds and stocks is that
I think the difference is mainly in four aspects:
1. Enter the time.
Stock: It takes a lot of time to do research and fundamental analysis in stock selection. Even Buffett analyzes the company's financial report every day. Many traders drive five computers and stare at the disk every day to study K-line and market information, but even if they stare at the market for a long time, they still lose money again and again.
Convertible bonds: As long as they are not high-priced convertible bonds, there is no need to stare at computers and market software every day, which is more suitable for investors who usually have to go to work and have no time to stare at the market.
2. Major securities
Stocks: Although the daily fluctuation range is limited, in the long run, the stock price fluctuates greatly, especially when it falls to the bottom. More importantly, there is no chance to close the position for several years ... Ordinary novice investors are likely to lose confidence in the investment market here;
Convertible bonds: almost all convertible bonds below 100 yuan are guaranteed. In the long run, they have debt protection and the decline is limited. However, when they rise, they can also compete with stocks. It is a channel to seek stable income for veterans who are accustomed to the skyrocketing market and familiar with various investment tools.
3. Market competition
Stock: The multi-party game in the stock market is fierce, with different interests. Bankers from all walks of life try their best to save money from the pockets of retail investors, like a hungry lion. Retail investors are too weak, so the stock market is said to be "eight losses, one draw and one profit";
Convertible bonds: Convertible bonds are rare places where the interests of listed companies and individual investors are highly consistent.
4. Investment strategy
Stocks: Stocks have various investment strategies, such as "K-line detonation, bull stock capture, dark horse and bright sword". You can see books about teaching people to speculate in stocks in major high-speed rail bookstores. For retail investors, while paying attention to market signals and disk news, it is necessary to control positions and trading opportunities. Under the dramatic fluctuation of market conditions and the rendering of market sentiment, Xiaobai is easy to chase up and kill down.
Convertible bonds: the strategy is relatively simple, and all the strategies can't escape the combination of key indicators such as "price, premium and yield to maturity". For Xiao Bai, just follow the rules.
Convertible bonds have the dual attributes of stocks and bonds, and are "stocks with principal protection" for investors. Convertible bonds have a strong market appeal to investors, and their advantages are as follows:
1. Convertible bonds give investors the lowest income right.
For investors, convertible bonds have the advantage of "not capping the top, but guaranteeing the bottom". When the stock price rises, investors can convert bonds into stocks and enjoy the benefits brought by the stock price rise; When the stock price falls, you can enjoy the fixed interest income every year, and you can repay the principal at maturity without conversion.
2. The current income of convertible bonds is higher than the dividend of common stock.
Investors can get regular interest income while holding convertible bonds. Usually, the current income of convertible bonds is higher than the dividend of common stock. If not, the convertible bonds will be converted into shares soon.
3. Convertible bonds have priority over stocks.
Convertible bonds are inferior credit bonds, which have the same recourse as ordinary corporate bonds and long-term liabilities (bank loans) in repayment order, but rank behind ordinary corporate bonds and can be repaid in priority compared with convertible preferred stocks, preferred stocks and common stocks.