QUOTE(nujikabane @ Feb 9 2011, 06:52 PM)
Hello all,
Mind enlighten me as to what callable bull certificate means ?
Particularly this paragraph :
If a Mandatory Call Event (MCE) occurs, we shall call the MAXIS Callable Bull Certificates. The Warrantholders are not required to serve any notice of exercise to us upon occurrence of MCE. The MAXIS Callable Bull Certificates will be suspended and terminated upon the occurrence of a MCE. The Warrantholders shall within 7 Market Days from the delisting date or the Expiry Date of the MAXIS Callable Bull Certificates, whichever is earlier, receive the Cash Settlement Amount. If the Cash Settlement Amount after deducting all exercise expenses is equal to or less than zero, we shall not be obliged to make any payment to the relevant
holder, and the MAXIS Callable Bull Certificates shall lapse on the occurrence of the MCE and cease to be valid.
CBBC / Turbo Warrants are like call warrants (got strike price and cash-settled), except with an extra feature. - call price
example, Maxis-JA as above, the call price is at 4.95,
this means that whenever the mothershare hits 4.95, it'll trigger a MCE (instant suspension and delist) and you can say goodbye to your money. having the call price there kinda puts the warrant always in-the-money which i think is the feature that gives the turbo feel to it.

right now there's a 51 sen safety margin in the mothershare, so if you believe it won't fall below 5, then it's all good. you need to understand that warrant players get VERY edgy when their warrants are about to become worthless and will throw at any price.
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the second part of the paragraph is just saying that upon delisting, if your cash settlement amount is =/< zero, you probably wont get payment.
This post has been edited by teehk_tee: Feb 10 2011, 02:01 AM