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 Warrant trade

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lklatmy
post May 13 2009, 08:24 PM

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QUOTE(ks3114 @ May 13 2009, 05:34 PM)
Got some questions about warrants here.

1) How much does it cost to convert the warrants? (Not the exercise price but the fee for the paperwork+service etc.)

2) How long does it take to convert the warrants? Lets say tmr 13/05/09 I submit everything complete, when will I see the mother share in my CDS? (I heard it was something like 2 weeks, not sure)

Im still new in this stuff, sifus please help and advice. Thanks
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1. around RM20.

2.Two to three weeks,check with the Registrar.
lklatmy
post May 13 2009, 10:07 PM

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QUOTE(ks3114 @ May 13 2009, 09:57 PM)
Thanks.

RM20 is per transaction? So lets say i convert 20 lots in 1 transaction, its RM20? I hope its not RM20 per lot.
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Fee is per transaction.

If your account is Nominee account,you will also have to pay the broker for the paper work.the amount varies from one broker to another.Just instruct the broker to do it on your behalf.

If your account is direct,just DIY,very simple,fill up the conversion form which can be obtained from the Registrar or Company's website,attach the requisite remittance by way of bank draft and send it to the Registrar.


lklatmy
post May 14 2009, 01:34 PM

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QUOTE(mememe12 @ May 14 2009, 01:40 AM)
since warrant is near to useless or is totally useless when expire due to WA price + exercise = more than mother share price, which make it not worth it to change it to mother share..

then who will want to convert the warrant to mother share wor?
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Not all warrants will expire worthless.Many reason for people to exercise and convert to mother share.

One example is those sophisticated players who arbitrage by selling the mother share and buy the warrant for conversion when the warrant is in the money.

 

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