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Warrants- From Noel Whittaker

QUICK CONCEPTS
For us beginners..fel free to post any usefull information for us beginners

What is a Warrant?

A warrant is a financial instrument issued by a bank or other financial
institution, which is traded on the Australian Stock Exchange’s equity
market. Warrants may be issued over securities such as shares in a
company, a currency, an index or a commodity.

There are many different types available. However, the most common are:
i) Trading warrants (put/call warrants) over a single stock, index
currency, or interest rate.
ii) Warrants over a basket of stocks.
iii) Instalment warrants.
iv) Endowment warrants.
v) Barrier warrants.
vi) Capital plus warrants.
vii) High-yield notes or BLOCS.

Warrants belong to the investment class known as derivatives and, as
such, are highly speculative. On the positive side, they can potentially
offer much higher returns than a direct investment as they are highly
leveraged. On the negative side they can lead to equally high losses
and, in the worst-case scenario, result in the loss of your entire
investment. Warrants tend to magnify the effects of any movement in the
market.

<blockquote data-quote="The Barbarian Investor" data-source="post: 9325" data-attributes="member: 348">Warrants- From Noel WhittakerQUICK CONCEPTSFor us beginners..fel free to post any usefull information for us beginnersWhat is a Warrant?A warrant is a financial instrument issued by a bank or other financial institution, which is traded on the Australian Stock Exchange’s equity market. Warrants may be issued over securities such as shares in a company, a currency, an index or a commodity.There are many different types available. However, the most common are: i) Trading warrants (put/call warrants) over a single stock, index currency, or interest rate. ii) Warrants over a basket of stocks. iii) Instalment warrants. iv) Endowment warrants. v) Barrier warrants. vi) Capital plus warrants. vii) High-yield notes or BLOCS.Warrants belong to the investment class known as derivatives and, as such, are highly speculative. On the positive side, they can potentially offer much higher returns than a direct investment as they are highly leveraged. On the negative side they can lead to equally high losses and, in the worst-case scenario, result in the loss of your entire investment. Warrants tend to magnify the effects of any movement in the market.</blockquote>

[QUOTE="The Barbarian Investor, post: 9325, member: 348"] Warrants- From Noel Whittaker [COLOR=Lime]QUICK CONCEPTS[/COLOR] For us beginners..fel free to post any usefull information for us beginners [COLOR=DarkRed]What is a Warrant?[/COLOR] A warrant is a financial instrument issued by a bank or other financial institution, which is traded on the Australian Stock Exchange’s equity market. Warrants may be issued over securities such as shares in a company, a currency, an index or a commodity. There are many different types available. However, the most common are: i) Trading warrants (put/call warrants) over a single stock, index currency, or interest rate. ii) Warrants over a basket of stocks. iii) Instalment warrants. iv) Endowment warrants. v) Barrier warrants. vi) Capital plus warrants. vii) High-yield notes or BLOCS. Warrants belong to the investment class known as derivatives and, as such, are highly speculative. On the positive side, they can potentially offer much higher returns than a direct investment as they are highly leveraged. On the negative side they can lead to equally high losses and, in the worst-case scenario, result in the loss of your entire investment. Warrants tend to magnify the effects of any movement in the market. [/QUOTE]

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