0.13 is the rounded multiplier. Should be 0.125 since the ratio is 8:1.

Easier if you quote the conversion ratio in ratio terms like 1:2 or 3:1.

FYI IOICORP-CJ conversion is 8:1 meaning 8 warrants needed to convert 1 mothershare.

So to see if tapau or not;

(warrant price * conversion ratio) + exercise price =/= mother price

(0.26 * 8) + 2.88 = 4.96 ; therefore still have premium over the mother share.


Bursa page for all Call Warrant

Yes. Most call warrants trade with some premium especially those with longer life spans. Paying as little premium or no premium is desirable but not always possible.

Kmarc, just wondering if you're going to add an example of how PUT warrants are calculated, now that KLCI got PUT warrants by OSK and AMMB.

Hmmm if I'm not mistaken, WA lasts longer than WB. So naturally it is more attractive as it has a longer lifespan. Meaning it has more premium.

WA conversion price is also lower about 55 sens but WB conversion is higher about RM1 I think.

Short term wise there is no difference as the warrants will track the mother prices 1 for 1, since the ratio is also 1 for 1.

So WB warrants are lower entry prices, but shorter lifespan which is about 4 years.

Where as WA warrants have higher entry prices but last about 7 years.

Lifespan only pays a big part when the market tanks and WA being a longer lifespan warrant might let the holders 'live' longer before expiry aka long term investor.


But since you're planning for short term, it shouldn't matter. Just make sure the counter has sufficient volume every day for you to dispose if you need to. As TGOFF-Ws have very low volume and Qs.

This post has been edited by skiddtrader: Aug 28 2009, 10:21 PM

If your broker gives you RM8 flat fee as brokerage fee, then there is nothing wrong with your calculation. Normally brokerage is by a minimum and as the transaction gets higher, it is based on % of transaction.

Like some brokerage in Malaysia charge a minimum of RM40 or 0.6% (whichever is higher) for broker assisted transactions but for online transactions it is only RM12 or 0.42% (whichever is higher).

So like if your brokerage gives a flat rate of RM8 which I doubt, for any amount of transaction, then your calculation is correct. Most have this % brokerage so they can 'untung' more from bigger transactions. Imagine RM8 for a RM1 mil transaction, a bit too generous right? So check what is your broker % brokerage fee and calculate if that is higher than RM8, if it is then it should be the correct fee.

Par value doesn't matter at all. Par value on as a reference of how much a stock has split and also used as a reference for dividend payments. Basically doesn't hold a lot of importance. Par value is not used in transaction costs calculation whatsoever.

Yup that's right.


All stocks when they are listed are by default listed on a par value of RM1.00. If they split the shares, it'll split the par value accordingly.

A lot of sifu here already suggested that the par value should be removed completely from Bursa. Because there is no need for it and will only confuse people.

I think SG market and USA also no such thing as par value anymore. Not so sure about that though.

If you are still holding the stock when the company issues the annual report then yes, you should get a copy of the report.

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Added on September 22, 2009, 8:15 pmPlease also refer to the 1st page of this thread where the warrant guide is written by kmarc for the benefit of all.

At last a friendly word of advice, always Google before you ask a general question. As most answers can normally be found easily but when the answers you found is confusing, then ask the appropriate question for clarification. Happy learning and good luck!



This post has been edited by skiddtrader: Sep 22 2009, 08:15 PM

Here is the KLSE link to all Guidance notes from 1 to 20.

If you register with any brokers with online interface, normally their software or website provide some form of company data. Depends on how much details that your need.

I believe RHB has this, I'm not so sure. OSK only shows the latest 4 quarters results, the rest are compiled to yearly.

If you want to do it manually, you can search for the quarterly results up to 10 years back from Bursa website and update it in a personal Excel file or something.

If the share price maintains at RM10 prior to split and bonus issue;

RM100000/12000 shares = RM8.33 per share

RM8.33 / 2 = RM4.16 per share (estimated price)

No it is completely different. Technically, bonus issue is just a term they use to issue more shares and diluting the EPS without any gain. A lot of people read "bonus" and thinks they are getting something extra and buy more shares, but it is the same like share split without dividing the par value.

For example, a company has 100 shares and gives out a 2 for 1 bonus share. Meaning the total amount of shares from 100 will increase to 300, because for every 1 share the company gives 2 more.

But the earnings per share is the same, so meaning a RM1000 profit will be shared among 300 shares instead of 100 shares. If you own 1 share and get RM10 for every shares, you're still going to get RM10 for every 3 shares you own after the bonus issue. There is no difference.

If the share in the market is RM6, after bonus it will become RM2.

A lot of people think bonus issue is free money but in actual fact there is no change. Bonus shares is more for creating more shares to for future share exercises like rights issue, share splits etc. Also bonus share can reduce the entry price for some shares, allowing more people to buy the share.

Cash dividend and share dividend however is the actual way of paying your investors as a reward, one with cash and the other with more share. Cash dividends let you decide what to do with the money, share dividend they re-invest the money back to their share.

Actually should be brokerage charge per transaction. When you Buy and Sell 3 different kind of shares the same day, you get charged for all 3 Buy as well as Sell transactions.

If you over sold, then you are considered short selling which is illegal. You have to cover back those extra that you sold and I believe there is some sort of fine for it. Your remisier should have more details for it and you should contact him/her on what you should do.

This post has been edited by skiddtrader: Apr 14 2010, 05:16 PM

From Google search and Wikipedia.

"Private placement (or non-public offering) is a funding round of securities which are sold without an initial public offering, usually to a small number of chosen private investors."

Meaning a public listed company decides to issue some new shares normally no more than 10% of total shares privately to institutional or strategic investors instead of to the public.