1, the original stock is the stock issued before the company goes public. In the early days of China stock market, corporate shares were publicly issued to the public at the issue price in the primary stock market. Corresponding to the original shares is common stock, which enjoys common rights and undertakes common obligations, and is the most basic form of company shares.
2. Bond stocks are convertible bonds, which are called convertible corporate bonds. In the current domestic market, it refers to bonds that can be converted into company stocks under certain conditions. Convertible bonds have the dual attributes of creditor's rights and options, and their holders can choose to hold bonds until maturity to obtain the company's principal and interest; You can also choose to convert it into stocks within the agreed time and enjoy dividends or capital appreciation.
Extended data:
1. Subscription of original shares:
One way is to get it through distribution. The establishment of a joint stock limited company can be initiated or raised. Initiation refers to the establishment of a company by the sponsors who subscribe for all the shares that should be issued. The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company, and the rest of the shares are publicly offered to the public to establish the company.
Another way is to buy through its transfer. The shares held by the promoters of the company are registered shares and may not be transferred within one year from the date of establishment of the company. After one year, the transfer shall be made in the designated stock exchange, and the transfer shall be made by the shareholders by endorsement or by other means stipulated by laws and administrative regulations.
2. Convertible bonds have both the attributes of stocks and bonds, and combine the long-term growth potential of stocks with the advantages of security and fixed income of bonds. In addition, convertible bonds have priority over stocks.
Investors should pay full attention to the following risks when investing in convertible bonds:
First, investors of convertible bonds should bear the risk of stock price fluctuation.
Second, the risk of interest loss. When the stock price falls below the conversion price, convertible bond investors are forced to become bond investors. Because the interest rate of convertible bonds is generally lower than that of ordinary bonds of the same grade, it will bring interest losses to investors.
Third, the risk of early redemption. Many convertible bonds stipulate that the issuer can redeem the bonds at a certain price after a period of issuance. Early redemption limits investors' maximum rate of return.
References:
Baidu encyclopedia-original Baidu encyclopedia-convertible