Equity Malaysia-Company Warrants

Company Warrants

Company warrants are issued by the company and give the holders the right, but not an obligation, to subscribe for new ordinary shares at a specified price during a specified period of time and yet it can be traded in the stock exchange. Warrants have a maturity date (it can be up to 10 years) after which they expire are worthless unless the holder had exercised to subscribe for the new shares before the maturity date

Structured Warrants

Structured warrants are proprietary instruments issued by a third-party issuer, usually will be an eligible broker or financial institution that give holders the right, but not the obligation, to buy or sell the underlying instrument in the future at a fixed price. Essentially, you are making a 'reservation' to buy or sell a pre-determined number of the underlying instrument at a certain price in the future when you invest in a structured warrant.

Types of Structured Warrants

Call Warrants

Holder have the right to buy the underlying share at a specified price within a limited period of time.

Put Warrants

Holder have the right to sell the underlying share at a specified price within a limited period of time.

Callable Bull/Bear Certificates (CBBC)

CBBC is for tracks the performance of an underlying stock without requiring investors to pay the full amount required to own the actual stock. They are issued either as Bull or Bear certificates with a fixed expiry date, allowing investors to take bullish or bearish positions on the underlying stock with the possibility of an early termination before the expiry date when the underlying moves in contrary direction to investors' expectations.