what is a warrant ( finance)?

• bladez87

  9 Jan 07, 22:06

  i kinda need help with it. dont quite get the idea of what is a warrant.
  
  is it the right to buy shares at a certain price within a fixed period of time?
  
  if so, it is a risky form of investment right?
  
  edit
  is there future growth for this form of investment?
• ditzy

  9 Jan 07, 22:56

  http://www.google.com.sg/search?hl=en&q=finance+warrant&btnG=Google+Search&meta=
  
  Don't ask why I didn't hotlink it.
• charlize

  9 Jan 07, 23:00

  I only know about arrest warrants.
  
  So how?
  
  
• charlize

  9 Jan 07, 23:01

  Originally posted by bladez87:

  i kinda need help with it. dont quite get the idea of what is a warrant.
  
  is it the right to buy shares at a certain price within a fixed period of time?
  
  if so, it is a risky form of investment right?
  
  edit
  is there future growth for this form of investment?

  There's a fcuking big difference between investment and speculation.
  
  Really.
  
  
• Meat Pao

  9 Jan 07, 23:06

  Hi,
  
  Today I went to walk my dog out. For a while only, because he didn't like to walk for long.
  
  Then after that I had a homemade pizza dinner.
  
  Oh then I tried some honey-coated cereal.
  
  Quite nice.
  
  Meat Pao.
• bladez87

  9 Jan 07, 23:46

  bad day i am having, made worse by having dogs barking . irony, if a dog owns another dog and brings it out for a walk, is that slavery?
• ditzy

  9 Jan 07, 23:53

  There is this neighbour I have who owns 3 small dogs, sometimes he takes all of them out in the morning, sometimes he only takes 2. Why I have no idea.
• bladez87

  9 Jan 07, 23:57

  Originally posted by ditzy:

  There is this neighbour I have who owns 3 small dogs, sometimes he takes all of them out in the morning, sometimes he only takes 2. Why I have no idea.

  because you rather stay at home right?
• ditzy

  9 Jan 07, 23:58

  Originally posted by bladez87:

  because you rather stay at home right?

  Huh?
• sunny6110

  9 Jan 07, 23:59

  Speculate in warrants only if u understand its mother share...
  
  double-edge sword
• sunny6110

  10 Jan 07, 00:03

  anyway.... buying a call/put warrant is nv an investment...
  
  in warrant... the issuers state the rules... sadly... sg market is popular wif warrants..
• bladez87

  10 Jan 07, 00:04

  Originally posted by sunny6110:

  Speculate in warrants only if u understand its mother share...
  
  double-edge sword

  what you mean mother share?
  and what you mean issuer set the rules?
• shade343

  10 Jan 07, 00:13

  Originally posted by bladez87:

  i kinda need help with it. dont quite get the idea of what is a warrant.
  
  is it the right to buy shares at a certain price within a fixed period of time?
  
  if so, it is a risky form of investment right?
  
  edit
  is there future growth for this form of investment?

  Basically, a warrant is a financial instrument that gives the holder the right,but not the obligation, to buy the underlying security at a fixed price(strike price).
  
  Call and put warrants usually have a fixed life span as defined by the issuer. Warrants are favoured by speculators as it provides them greater access to leverage.
  
  It is considered risky because it is a form of investment catered to more sophisticated investors.
  
  
• shade343

  10 Jan 07, 00:23

  Originally posted by bladez87:

  what you mean mother share?
  and what you mean issuer set the rules?

  I think he is referring to teh underlying share which the warrant derives its value from.
  
  Issuer set the rules refers to the time period which the warrant exist before it expires and the strike price and the type of warrant.