Malaysia Company Business Directory Information Listing» Warrants Malaysia

Equity Warrants

admin — Tue, 03 Nov 2009 09:21:02 +0000

Equity warrants are the name given to call and put warrants: ~
* If you invest in call warrants that will give you the right to purchase the underlying securities
* If you invest in put warrants that will give you the right to sell the underlying securities

Covered Warrants

admin — Tue, 03 Nov 2009 09:18:44 +0000

A Covered Warrants is a name given to a warrant that has a guarantee, for example, the issuer must buy the stock before hand or will use other instruments to cover the option.

Basket Warrants

admin — Tue, 03 Nov 2009 09:13:41 +0000

As if a regular stock index, orders can be classified into, for example level of an industry. This means that reflects the performance shown by the industry.

Index Warrants

admin — Tue, 03 Nov 2009 09:12:41 +0000

An index like the underlying asset are used by index warrants. If you use index call and put orders index then disperses the risk is similar to what happens to ordinary equity indices. This should not come at a price that the index points. This means that dealing with cash and not directly with the actions.

Traditional Warrants

admin — Tue, 03 Nov 2009 09:11:23 +0000

Traditional Warrants are orders to be issued in connection with a bond (known as a command-linked bond), and the right to acquire shares of the issuer, the bond is represented by it.

Explain this in other words, whoever is the author of a traditional warrant is also the issuer of the underlying instrument. Thus, orders are issued as a “sweetener” to make the bond more attractive, and for reducing interest rates, which must be held with the purpose of selling the bond issue.

Naked Warrants

admin — Thu, 29 Oct 2009 09:44:56 +0000

Naked warrants are bonds that are issued without an accompanying link, and like traditional orders, but also listed on the stock exchange. Usually banks and securities they issue. These also concern that covered warrants, and these orders are settled in cash, for example, that it is not the company which issued the shares underlying the warrant.

In most markets around the world, covered warrants are more popular compared to traditional orders Naked Warrants described above. Financially, they are also identical to the call options, but generally, rather than investment funds or banks, which are bought by investors who prefer options with more intensity, with prices that tend to trade in a different market. Normally, covered warrants are sold together with stocks, so this makes it easy for retail investors to buy and sell.

Third Party Warrants

admin — Mon, 26 Oct 2009 03:41:35 +0000

Third party warrant is a name given to a derivative that is issued by the holders of the underlying instrument.Let assume that the issues of society X million orders by which the holder is given the right to convert each order action at $ 500. This order is one that is issued by the company. Now suppose that a mutual fund that owns 10,000 shares of X sells warrants against such actions, that are exercisable at $ 500 per share. Such orders are known as third party orders.

The main advantage of this order is that the aid instrument in the process of price discovery. In the case mentioned above, the investment fund through the sale of one year in order to be exercised $ 500 actually gives a signal to other investors that the population could be traded in 500 levels in a year. If orders in such volumes are high, the price discovery process will be much better, because that would mean that it is believed by many investors that the stock will trade at that level in a year.

Essentially third party guarantees the long-term call options. A covered call writing and has been done by the seller of the warrants. This means that stocks are maintained by the seller and which will sell warrants against them. If $ 500 is not crossed by the people, then the buyer will not exercise the warrant. The seller, therefore, maintain order premium.