What does allocating debt mean? Do you want to buy it?

I have only heard of stocks, funds, and treasury bonds. This is the first time I have heard of bond allocation, so many people are confused because they don’t understand what it is, what it is used for, and how it can be used. It cannot be purchased. Let me introduce to you the related concepts and buying and selling rules of bond allocation.

What does it mean to buy bonds?

Debt allotment refers to stock allotment, which is a kind of bond issued by listed companies and a financing behavior of listed companies. That is, a listed company issues bonds, which investors can buy, and then the listed company achieves the purpose of financing. This is a very common operation in the stock market. After all, a company needs to constantly raise funds. Allotment of bonds needs to be purchased. If a company wants to issue bonds and you hold shares of this company, you have priority to get the right to purchase them.

On the bond subscription day, investors only need to have cash in their account and enter the entrustment code to get the convertible bond, and the cash in the stock account will become "XX convertible bond". If you do not follow this step, it means that you did not buy "XX convertible bonds", and your account will show "XX allocation bonds".

After the bond allocation is paid, it will not be displayed immediately in the position. You can check it in the position one day before the announcement is made. There will be a text message notification on the day of listing. Just enter the code to sell. You don’t have to sell on the day of listing. Just like the new stocks you hold, investors can decide when to sell based on their own circumstances, market conditions, and the trend of bond allocation.

The meaning of allotment of debt can be understood in comparison with ‘allotment of shares’. Allotment of shares is a financing act in which a listed company allocates a certain number of newly issued shares to original shareholders in proportion to their shareholdings at a specific price lower than the market price based on the company's development needs and in accordance with relevant legal provisions and corresponding procedures.

After reading the above introduction, I believe everyone has a good understanding of debt allocation. There is a difference between allotment of bonds and new shares. When the listed company of the stock you hold issues allotment of bonds, it is equivalent to you having won the lottery. It depends on whether you need it. If you need it, enter the code to buy and the money will be deducted first. No No operations are required.