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Multi headed child: Doctor, through yesterday's study, I got to know the basic concept of warrants. What are you talking about today?
Doctor: Today I will talk about the basic elements of warrants. The basic elements of warrants are as follows:
The exercise price refers to the price agreed upon when the warrant is issued, at which the investor will subscribe or sell the underlying assets in the future.
Maturity Date The expiration date of the exercise validity period is determined when the warrant is issued, but the expiration date is not the same as the last trading day. SZSE stipulates that the warrant shall terminate trading five trading days before the expiration date. The holders of American style warrants may request the exercise at any time before the expiration date; The holders of European style warrants can only request the exercise of warrants on the expiration date.
The exercise ratio is the number of underlying assets that can be converted from a warrant. At present, the exercise ratio of warrants is generally 1, that is, one warrant can subscribe for one underlying asset.
Trading system Warrants are subject to T+0 trading. Warrants purchased on the same day can be sold on the same day. In addition, the trading unit of warrants is 0.001 yuan; The number of warrant purchase orders shall be an integral multiple of 100, and the number of single warrant purchase orders shall not exceed 1 million.
The methods of exercise settlement mainly include securities payment settlement and cash settlement. Contributed by Ethnic Securities
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
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