Category: Money tips Release Date: 2006-06-13
Wuhan Steel shares warrants and put warrants to subscribe for 23 is coming soon.
For the outstanding shares of shareholders to subscribe for warrants and put warrants will have the following differences:
First, the holders of "working stock + warrants" a combination of different risk. As the call warrants and put warrants on shares of sensitivity is different, as are shares of the increase in warrant price increases put warrants the prices. From the "are shares + warrants" combination of sensitivity point of view, warrants will aggravate the portfolio systematic risk, while the put warrants will be the hedge is part of the risk of fluctuations in share price.
Second, the compensation for the circulation of different shareholders. In the regular stocks falling, the prices of put warrants, would flow to compensate shareholders for losses, thereby reducing the circulating shares of the break-even point; and warrants outstanding shares allows shareholders in the performance of possible future growth story get a cup of soup, but if the stock paste of the right, then the flow in the short term can not give shareholders the amount of compensation.
Third, the value of different maturity. Since the current share reform program contained in the warrants are equity settlement to settlement, which would warrant a major impact on the maturity value. For put warrants, if about to expire, the warrant for-money warrants, or stock price less than the exercise price, the holders of warrants to buy is definitely the right line of stocks, buying pressure may cause share prices to the to move closer to the exercise price, so that warrants the loss of value; As for the warrants, in the approaching period, if the for-money warrants, the holder simply ready to cash in order to major shareholders the right by-line price of buying the stock, rather than A stock's share price on the circulation of an impact. But after the power line, the market can be a sudden increase in the flow of the stock, investors want to take profits as soon as possible, then, is the short-term sell-off hit shares, stock prices will inevitably decline, so that investors suffer losses.
Finally, put warrants allow investors to build a variety of portfolios, while the warrants on the absence of short selling in the market conditions, the speculation can only serve as a tool for speculators.
