Study On Characteristics Of Issuing Convertible Bond Financing Of Listed Companies

The capital market plays an important role in the economicdevelopement of a country .It is the important place that the enterprisesraise the long-term funds. Traditional capital market includes the stockmarket, the bond market,and so on. Among them, the stock market is themost important one.And it is the main place that the enterprise raises thefunds. Through the development of more than ten years,our capitalmarket has achieved a lot and played more and more important role in theeconomy resource allocation.It is more and more difficult for anenterprise to raise funds in the stock market because of kinds of things.Asa creative financial tool ,the convertible bond is valued by theenterprises. To enterprises, the convertible bond has the advantage of twokinds of financial tools of the bond and the stock.Thus it satisfise bothand the enterprise can publish it smoothly. The company can pass the influence to the price of it's stock, andthen place the influence to the convertible bond indirectly.This articletries to analyze it from the angle of the company , and put forward someviews. . This article consists of five majors:outline,theory analysis, therelativity of the prices, the operation of affecting the stock price and otherthings that should be noticed. Chapter 1 is relevant to thebasiccharacteristics of the convertible bond. the convertible bond iscontrasted with the bond and the stock,and then we can conclude theadvantages of each other.In the end ,we analyze the financial meaning ofissuing the convertible bond. Chapter 2 is the theories analysis of theconvertible bond. It is mainly about the use of the convertible bond in thetheories. Chapter 3 analyzes the relativity of two prices which are thebargain price of the convertible bond and the price of the stocks. From theresult we can see,both prices have the high relativity.This also forms thefoundation for the next chapter's analysis. Chapter 4 is about a fewaspects affecting the stock's price. Of them the accounting profits andother financial information are most important.The last chapter discussesa few problems that should be noticed. Two aspects are put emphasizedon.One is the coordination between new shareholders and oldshareholders,the others are some law problems.