1, and the cost of issuing bonds is low. Compared with the dividend of stock, the interest of bond is allowed to be paid before income tax, so it has the effect of tax deduction. In equity financing, there has always been a problem of "double taxation" on enterprises and shareholders, which has increased the financial cost of enterprise financing. Therefore, generally speaking, the comprehensive financing cost of corporate bond issuance is lower than that of stock financing.

2. Better protect the control rights of shareholders. The biggest defect of stock financing is that it weakens the control right of enterprises, thus affecting the management of enterprises. By issuing bonds, because bondholders are only creditors and have no right to participate in the business decisions of the issuing company, there will be no dilution of equity.

3. Bring financial leverage benefits. Although enterprises can raise the required funds through stocks, they can also achieve the purpose of financing, but the income obtained by using the raised funds will face a larger distribution base. In bond financing, no matter how much profit the issuing company makes, bondholders generally only charge fixed interest, and more income will be distributed to shareholders or left to the company for operation, thus increasing the wealth of shareholders and the company. When it comes to margin financing and securities lending, it is estimated that many people are either in the fog or avoid it. Today's article is my experience in stock trading for many years. I emphasize the second point, all dry goods! Before we begin to explain, let me introduce you to a super-easy collection of stock trading artifacts. Click on the link to get it: Nine Artifacts of Stock Trading for Old Shareholders!

1. What is margin financing and securities lending? When it comes to margin financing and securities lending, we must first understand leverage. To put it simply, your capital is 10 yuan, and the things you want to buy add up to ***20 yuan. The borrowed 10 yuan is a lever. If you understand margin financing and securities lending in this way, then it is a way to increase leverage. Financing, in other words, is that securities companies lend money to investors to buy stocks and repay the principal and interest at maturity. Shareholders who borrow shares to sell are securities lending, and return the shares in accordance with the regulations within a period of time and pay interest. The characteristic of margin financing and securities lending is to magnify things. When it is profitable, the profit will be magnified several times, and when it is losing money, the loss can be magnified a lot. It can be seen that the risk of margin financing is not so low. If there is a high probability of operational errors, it will turn into huge losses, which requires investors to have a high investment level and be able to seize the right trading opportunities. It is difficult for ordinary people to reach this level, so this artifact is very good. When is the best time to buy and sell through big data technology? Don't miss it: AI intelligently identifies trading opportunities and gets started in one minute!

Second, what are the skills of margin financing and securities lending? 1. Using the financing effect can amplify the income. For example, if you have a capital of 6.5438+0 million yuan, and you are optimistic about XX stocks, you can take out your money to buy stocks first, then mortgage the stocks you buy to a trusted brokerage firm, and then raise money to buy stocks. If the stock price goes up, you will get an extra part of the income. Similar to the example just now, if there is a 5% surge in XX shares, there has been only a profit of 50,000 yuan, but if it is through margin trading, you will earn more than that. Of course, if you can't make a correct judgment, the loss will be even greater. 2. If you feel that you are suitable for steady value investment, then pay more attention to the medium and long-term market outlook and integrate funds with brokers. You only need to mortgage your long-held stocks as value investment, and you can enter the market without additional funds at all. After making a profit, you can divide part of the interest to the brokers, and you can get richer results. 3. Use the securities lending function to make a profit even if it falls. This is like, for example, the current price of a stock is 20 yuan. Through a lot of analysis, I feel that this stock will fall to around 10 yuan in the future. Then you can borrow 1 0,000 shares from the securities company and sell them in the market at the price of 20 yuan, and you can receive 20,000 yuan. When the stock price drops to about 10, you can buy the stock again at the price of 10 yuan per share, buy 1 0,000 shares, and return them to the securities company at the cost price. Then the middle is manipulated back and forth, then the price difference is the profit part. Of course, we have to spend some money on securities lending. After this series of operations, if the stock price rises instead of falling in the future, the cost of repurchasing securities to the securities company will be higher after the contract expires, but it will lead to losses.

Legal basis:

Article 12 of the Regulations on the Administration of Corporate Bonds

An enterprise that issues corporate bonds must meet the following conditions:

(a) the scale of the enterprise meets the requirements stipulated by the state;

(2) The enterprise's financial accounting system conforms to the provisions of the state;

(3) Being solvent;

(4) The enterprise has good economic benefits and made profits for three consecutive years before issuing corporate bonds;

(5) The use of the raised funds conforms to the national industrial policy.

Article 19

No unit may purchase corporate bonds with the following funds:

(1) Financial budget allocation;

(2) bank loans;

(3) Other funds that are prohibited by the state from being used to purchase corporate bonds. Institutions handling savings business shall not use the absorbed savings deposits for purchasing corporate bonds.