Primary dealer of warrants GF Securities Liu Siling
According to China Yangtze Power About Changdian CWB1 As for the announcement of the exercise results of the warrants, as of the end of the exercise period on May 24, 3691724 Changdian CWB1 had not been exercised. It is a pity that some investors failed to exercise their rights in a timely manner, resulting in undeserved losses. This reflects that a considerable number of investors still lack sufficient understanding of warrants and the meaning of exercise. Here are some specific explanations for warrant exercise.
Warrant is an investment tool that gives investors rights (rather than obligations), allowing investors to buy and sell the relevant warrants at a specified price during a specified period in the future shares 。 During the specified period, the warrant holder's behavior of using relevant rights to buy or sell relevant shares is called "exercise".
In practice, investors should pay attention to two key points when exercising their rights: first, there is a time limit for exercising rights, which means exercising rights within a specified period (exercise period), neither before nor after the exercise period. In particular, it should be noted that the exercise operation is overdue, and the warrants that have not been exercised after the expiration will be cancelled, and then the warrants will have no value. Generally speaking, investors can find the exercise period of the warrant in the listing announcement of the warrant. For example, the listing announcement of WISCO CWB1 stipulates that the exercise period of the warrant is from April 10, 2009 to April 16, 2009. Second, during the exercise period, the holder has the right to exercise the right to buy or sell shares, but whether to exercise or not depends on the income from exercise. How to calculate the return of warrant exercise? Take WISCO CWB1 as an example, its exercise price is 10.2 yuan. If the investor holds WISCO CWB1 until the exercise period, without the exercise fee, if Wuhan Iron & Steel The price of is higher than the exercise price during the exercise period. It is profitable for investors to choose to exercise, and the higher the stock price rises, the greater the return. If the share price is as low as 10.2 yuan or below (i.e. out of the price), the loss will be caused regardless of whether the exercise is carried out or not, and the loss will be greater than that of the exercise. In this case, WISCO CWB1 is not worth exercising, and the loss of investors is the cost of purchasing warrants.
Finally, investors need to be reminded that at present, all warrants in the warrant market are implemented negotiable securities For settlement, the automatic exercise is not allowed. The warrant holder must actively submit the exercise declaration on the exercise date, and the stocks obtained from the exercise of the warrant can be operated on the next trading day after the exercise. Therefore, the actual exercise income is also affected by the fluctuation of the positive stock price after the exercise.
