Category: Money Tips Date: 2006-12-24
Q: Why should investors to sign warrants the risk of revealing book?
A: Because the warrants are high-risk, high-yield investment products suitable for risk-preference-based investors to participate. As the wide medium and small investors lack knowledge of this innovative product, in particular the lack of understanding of the risks contained in them, so SSE demand warrants investors to participate in the risk of transactions before they are required to sign the book reveals. Risk revealing book on the creation of a mechanism that may affect the trading price of risk warrants and other related content, has been fully revealed.
For example, the Wuhan Iron and Steel Group's November 18 release of a prompt announcement, the first also prompted investors in the venture, Wuhan Iron and warrants listed on the Shanghai Stock Exchange has also issued one days before the relevant notice in advance inform the investors will start the creation of a mechanism.
Q: JTP1 WISCO WISCO JTB1 and November 28 why 1 hour suspension?
A: According to the "Interim Measures on Management Shanghai Stock Exchange Warrants" in 28th stipulates that "this is based on market demand warrants the right to suspend trading," JTB1 Wuhan Iron and Steel and Wuhan Iron and Steel JTP1 due to three consecutive days (November 23 to November 25
Q: The theoretical value of warrants and the warrants market price is the same? How they come from?
A: The warrant for a reasonable price is near the theoretical value of warrants changes, the two are not identical. The theoretical value of warrants in accordance with internationally accepted pricing formula, by choosing stocks, warrants Terms and Conditions (the exercise price, duration of the exercise ratio) and parameters such as stock price volatility is calculated. The warrants a reasonable price is affected by market supply and demand effects arising from transactions by investors, in the vicinity of the theoretical value of warrants changes in prices.
The theoretical value for the warrants in the calculation of different parameters will lead to selection there are some differences in the results, therefore, investors will see a number of research reports for the same just have different theoretical value of the warrants. As the price of warrant investors arising from transactions, supply and demand which have a substantial impact, and thus the theoretical value of the warrants is only an important reference to determine the price warrants.
Q: What changes in warrant price is reasonable?
A: The stock warrants as the benchmark for derivatives, which should be the benchmark stock price changes (that is shares) of the price changes have a close and relatively stable relationship, it should be fluctuations in the vicinity of the theoretical value of warrants. , Taking into account the impact of the transaction the relationship between supply and demand might lead to a certain degree of deviation, but it should not deviate too much, and the duration should not be too long. If the initial transaction price changes of the three warrants and stock price changes virtually no relationship, and with the theoretical value of warrants deviation between the high, excessive deviation from the longest Baosteel JTB1 once over more than three months, This situation is far from normal, and did not rule out the Shanghai Stock Exchange in the future will also start the creation of a mechanism of Baosteel JTB1. It is the creation of mechanism, there is expected to correct the warrants market is not a normal trading status, warrants this innovative product to maintain healthy and stable development.
Q: investors warrants to demonstrate this innovative product trading needs, the Shanghai Stock Exchange to meet investor demand What are the follow-up initiatives?
A: For investors, the transactions shown on the warrant requirements, the Shanghai Stock Exchange has passed the risk of revealing, tight monitoring of transactions, start the creation of a mechanism to increase the supply, etc. to be a positive response and normative guidance. In addition, there are many brokers to submit to the Shanghai Stock Exchange, the issuance of covered warrants the application, the Shanghai Stock Exchange has also been completed the relevant technical preparations for possible future release issued by the broker covered warrants, to further increase the supply of warrants quantity, and design of the system in the transaction to consider the introduction of a dealer to guide and influence warrant a reasonable deal to restore the warrants, as the true nature of equity derivatives products.
