Traditional corporate equity warrants
Warrants are for experienced investors who have an understanding of risk, and who want to exploit the gearing potential in warrants. This is one of the more hidden - and thereby inefficient - areas of the market, offering interesting opportunities to the shrewd investor.
Prior knowledge required
Very little prior knowledge is required, but the topic involves a fair bit of simple mathematics. Warrants should not be the starting point for a
novice investor, and so, although not required, a good knowledge and experience of ordinary share markets is desirable.
- What is a warrant?
- The warrant market
- Advantages of warrants over shares - the magic of gearing
- Further attractions of warrants
- Disadvantages of warrants
- Fundamentals - warrant terms
- Fundamentals - intrinsic value and parity ratio
- Basic analysis
- Analysis - time value and premium
- Analysis - gearing
- Analysis - break-even and capital fulcrum point
- Analysis -sample spreadsheets
- Analysis - summary
- Investing strategies
- Dealing in warrants
- Warrant exercise
- Further topics
- Further information