sifu-sifu pls tell me wat is warrant ... i ask my fren but he not really sure also ... just said high risk high gain only got alot of detail i need to know also:p

TQ advance ... wat warrant u sifu this is safe n best buy?

Not surprise that they don know as most of them just follow what others said.... if ppl say warrant high risk then yes warrant is high risk.....

In actual fact yes warrant has a higher risk no doubt about it

1. Warrant has an expiry date
2. Warrant is a vehicles for a company to raise fund for their business expansion.

Give you a simple example. Company ABC

ABC mother share is trading at RM 8.00

It want to raise fund... so they issues out xxxx... number of warrant

For example the warrant is being issued at RM 0.50 sen per warrant. After you buy the warrant you can choose to convert the warrant to mother share with conversion price which is stated by the company ABC may be RM 7.00 per share. Therefore by converting the warrant to mother share the company get more cash from the conversion....Mostly is done by the director themselves for normal ppl they buy warrant for short term trading as they can gain more from trading warrant compare to mother share... But the risk is there as warrant got expiry date maybe 2 years or maybe 5 years up to the company......

How about warrant raised by other companies like fund houses?

And some warranty cannot be converted to mother share right?

Those are call-warrant.

>> call warrant/option are the only thing we had in malaysia...that's only if we expected the market to be the bullish...so..if bearish? we Koyak already...in u.s we have CALL and PUT warrant/option..we used PUT for the bearish market...

>> so.. don't invest in malaysia stock market...it's has no liquidity..no opportunity..

can i know how to convert warrant to mother?

Take the warrant, pay the price agreed, then get ordinary share.

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Added on January 18, 2009, 2:22 pmWarrant is right to exercise an option to buy ordinary share under a pre-determined price in a pre-determined period of time. Eg 1 unit of warrant holder of YTLPOWER-WB can buy 1 YTLPOWER ordinary share with RM1.21 (where market price for ordinary share is around RM1.90).

This post has been edited by htt: Jan 18 2009, 02:22 PM

where to get the price 'agreed' and how to pay? tell my broker is it?

The "agreed" price is set when the warrant being issued time.

How to earn from warrant before expiry date? Let say, if I bought 10000 shares or warrant ABC at the price of 0.005.

After few weeks, let say if the price goes up to 0.008, can I sell it? The difference of buying and selling prices are my profit or loss? Works like normal share?

Thank you.

Yup for trading purpose work like normal share. Just that most trader like warrants as it provide more leverage on your investment.

gues what yesterday night i was researching on warrant what is warrant for more then 2 hour .

still can`t really understand much .....


but now this topic bring up . proud of lowyat.net !!!!!!!!!!!

lowyat .net member rock !!!!!!!!!!!!!!!




okokay back to topic .

there few thing i wanna know . cause i just start to invole my self in share ........ and buy on a a warrant .

reason buy warrant .

Fast response - so i can test the internet gateway .
Learn warrant - hehheheehe cause the most thing i dont know the most is warrant .
Tamak abitle - hehehehe tamak lu ....


ok now let see the problem .

i buy Sapcres-wa on the price 0.65

reason i buy this warrant the most volume .
second i estimate and it seem already in quite a low price and might earn alittle . estimated in chart .




Now Come To Question.

1.if the warrant is expire what i get ? the last price money ? or must change to mother share ?

2.if i change to mother share now ? i still need to pay the ordinary price now rite ?

so what happen to my warrant share ? how much i can change to warrant share ? i heard at least 1000 share mean 10 lot ??

3. hehehe tamak question will this warrant share stay hit up to 0.70 again thn i sale it to breakeven but hope can higher la , cause now is 0.50

1. Nothing, to convert or not is up to you, but no point to convert if the conversion price higher than ordinary share price.
2. No, pay the conversion price. Second part I can't get you.
3. No comment

1. When expire if u didn't convert, then u get peanut. Even when it's near to expiry date, if the exercise price + warrant price is much higher than the underlying mother share price, the warrant price most probably near to peanuts already.

2. U pay for the warrant price (which u already bought) + exercise price in exchange for the mother share. It may takes a few weeks for the conversion process.

3. Yup i believe it can....U wait la Orang tamak selalu rugi.

hheheheh i sold d dont tamak d hehehehehe so now lucky not lossing much ..

Another question on CW.
1. Does they always peg to the mother share price? (At least parellel where mother share goes down, CW goes down and vise versa?)
2. Does CW ever goes broke (PN17) if the mother share is still around?
3. When near expiry period, I heard CW always drops to make sure you lose out when want to convert to mother share (how true is it?)
Thanks in advance.

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Added on January 24, 2009, 11:20 pmAnother thing,
4. Does CW get any dividends?

This post has been edited by AzerothJr: Jan 24 2009, 11:20 PM

1. Most of the time... but it doesn't mean that whenever the mother share rises, CW must follow
2. I think CW will only expired
3. I think u mean the mother share price dropped? another thing is CW is always cash settled, so most of the time u cant convert it to mother share.....
4. Nup, u wont get any dividend frm CW

You think warrant as an independent counter influenced by its mother share with some restrictions.

How to check the warrant expiry date ? Eg: Ramunia-Wa

i newbie...
is it can buy warrant instead of buy the mother share 1st?
is it warrant can buy only if i buy their mother share? mean warrant attach v mother share?