Forum Archive Index - September 1999

["vincent.wang" <vincent.wang@xtra.co.nz>]

When listing company wants to increase capital, sometimes they have right
issue.  The issue is normally a proportion of outstanding shares, e.g., 1
for 2,  (you get one "rights" for every 2 shares you hold) or 1 for 10. 
You need to pay some money to be entitled for the rights issue.  (if it is
bonus issue, you get the share without paying any money)

The difference between warrant and right is, for warrant, you normally pay
a small money for a warrant now, and you pay a bigger money to "transform"
the warrant to be a share sometime later.

RGDS,

Vincent Wang 
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From: ead lewis <eadlewis@xtra.co.nz>
To: sharechat@sharechat.co.nz
Subject: [sharechat] rights, options and warrants
Date: Thursday, September 16, 1999 12:11 PM

hi everyone,  
i'm looking to find out what rights issues and options are ... being new to
the world of stocks and shares, i'm still trying to understand the
terminology ... most of the books i've read simply confuse me ...so anyone
with simple explanation would be great...

also, what are warrants...i've just been reading the article posted on the
sharechat home page about Merrill Lynch launching 'call' warrants on
'baskets of tecnology stocks ... sure sounded interesting, but think i need
to understand it more ... any ideas ... cheers, lindy 


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