Warrants
Warrants are investment securities or other securities of
the derivative type that represent the entitlement to
acquire underlying assets, such as shares, bonds or other
investment tools. By purchasing a warrant the owner obtains
the right to buy (call warrant) or sell (put warrant)
certain amount of underlying assets (e.g. shares) within a
deadline defined in advance and at a price defined in
advance. This means that the investor is entitled, but not
obliged, to buy or sell an underlying asset. Should it
decide to make use of this right (application of warrant) it
will obtain the underlying asset.
A specialist derives the warrant price based on the price
development of the underlying asset.
Issuers are usually large multinational financial
institutions.
Trades of warrants may be concluded within
trading in a specialist’s presence, or within automatic
trading.
Detailed information: