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Warrants refer to the securities issued by a specific issuer, and the agreed holder has the right to purchase or sell the underlying securities from the issuer at the agreed price within a specified period or on a specific maturity date, or to collect the settlement difference by cash settlement.
There are two types of warrants: one is the call warrant, which means that the holder has the right to purchase a specific amount of underlying securities from the issuer at a predetermined price within a certain period of time, and its essence is a call option; The other is the put warrant, which means that the holder has the right to sell a specific amount of underlying securities to the issuer at a predetermined price within a certain period of time, which is essentially a bearish
Options.
Warrants are also divided into European and American warrants. American warrants allow holders to exercise their rights at any time between the listing date and the expiration date, while European warrants can only exercise their rights on the expiration date. At present, China is mainly European style warrants.
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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