Wu Qianqian asked: "Do you realize that after the first financing, you can refinance?" ”

"As long as certain conditions are met, you can continue to raise funds, such as additional shares, private placement of shares, allotment of shares, etc...... しwxs520。 The biggest advantage of raising money from the securities market is that you don't have to repay the principal to investors. If you borrow money from a bank, you not only need to repay the principal, but also need to pay high loan interest, which should be a lot of pressure for the company. Shirley said.

"You're right, repaying the interest on the bank's loan is very stressful for the business. By the way, Shirley, what is additional issuance? ”

"The issuance of additional shares refers to the act of a listed company re-issuing shares to all investors in the stock market for the purpose of refinancing. If a good project is in urgent need of funds, the issuance of additional shares is undoubtedly the best solution to the problem. ”

"What is the difference between a private placement and an additional issuance?"

"Private placement of shares, also known as non-public offering, is the issuance of shares to specific investors. The conditions for private placement are relatively relaxed, there are no performance requirements, and there is no restriction on the amount of financing. According to the regulations, there is a time lock-up period for the transfer of shares, except for the specific issuance of no more than 10 specific issuers. Private placement does not need to go through a cumbersome approval process, nor does it have to wait for a long time, and the issuance cost can also be greatly reduced, so it has gradually become the mainstream way of refinancing for listed companies. ”

"Is the so-called allotment of shares the issuance of shares to shareholders?" Wu Qianqian continued to ask.

"Not bad. Allotment is the act of a listed company issuing new shares to the original shareholders to raise funds. In other words, the original shareholders have the right of first refusal. Since the price of the new shares is discounted to a certain extent according to the market price of the stock at the time of the issuance announcement, shareholders will have a certain margin of profit after obtaining the allotment. ”

"Can it be said that the rights issue is a way for the company to pay dividends to shareholders."

"A rights issue is not a dividend. The allotment of shares obtained by shareholders is purchased by paying for them, while the dividends are the company's gratuitous return on the investment of shareholders. There are generally two forms of dividends, one is cash dividends, that is, the company pays cash dividends to shareholders. The other is that the company distributes bonus shares to shareholders, which has the advantage that the company does not have to give back real money to shareholders, but converts the cash dividends that should be distributed to shareholders into capital to expand the company's production and operation. ”

"I've heard that there's another form of financing called corporate bonds, how about this way?" Qin Lan asked.

"Corporate bonds are securities issued by the company in accordance with legal procedures and repaid with principal and interest within a certain period of time. Once a bond is issued, a legal relationship of creditor's rights and debts is formed between the holder of the bond and the issuer with the content of repayment of principal and interest......"

"Since you have to repay the principal and interest, isn't it almost the same as a bank loan?"

"Although it looks similar, there are still big differences between corporate bonds and bank loans in terms of financing costs and comprehensive impact. First, the interest rate of corporate bonds is fixed, which is conducive to the company's locking in financing costs; Banks' interest rates, on the other hand, are fluctuating and are most likely to rise, so it is likely to increase the company's financing costs. Second, because corporate bonds are securities, they have strong liquidity, or ...... liquidity."

"What is liquidity?"

"In layman's terms, liquidity is how easy it is to trade bonds, and to put it simply, liquidity is how easy it is to turn bonds into cash through market transactions." Shirley explained.

"That means that creditors can trade bonds through the market at any time?" Qin Lan asked.

"Sister Qin is right, if the creditor needs money urgently, he doesn't have to wait until the bond matures, and he can realize it through transactions at any time."

"The question is, if you sell bonds that don't mature, you must lose money, right?"

"Why?" Shirley asked.

"Because only if it's lower than the par price, will anyone buy it?" Qin Lan said.

"Not necessarily, if that were the case, there would be no investors buying bonds. Whether it is a loss depends on the change in the interest rate of the bond market at that time. Let's say you bought a company's bond with a par price of $100 last year at a fixed interest rate of 6%. Due to the downturn in the bond market this year, the interest rate has fallen to 4%, and the interest rate of the bond you hold is 2% higher than the market, the bond in your hand has become more valuable, and someone will buy the bond in your hand at a premium of more than 100 yuan, and you not only do not lose money, but make a profit. The reverse is true. What do you think? Trading in the bond market, which may seem complicated, is actually as simple as that. ”

"I don't know if I don't listen, I'm shocked when I hear it, I don't need to open a factory, I don't need to recruit workers, just like that, the money will be earned, it's amazing." Hu Manru said.

"This is the charm of financial investment or capital operation. Of course, this is only a very small example of financial investment. Shirley smiled slightly