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Most Asked Questions

How are the rights of a warrant holder different from the rights of a shareholder over the underlying stock?

Holder of a warrant on an underlying stock does not have the same rights as the shareholder of the underlying stock. Holders of warrants do not have voting rights or the right to receive any dividends, bonus or other distributions from the issuer of the underlying stock. The life span of a warrant is fixed, which may be automatically exercised on its expiry date or may expire worthless, whereas a shareholder of the underlying stock can hold such stock as a long term investment.

You may read further "How does the distribution of dividends of an underlying stock affect the price of a warrant or CBBC?".