warrant与option

warrant|option|derivatives warrant|equity warrant|期权|权证

Warrant

A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.   The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months.

Option A financial derivative which represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (excercise date).   Options are extremely versatile securities that can be used in many different ways. Traders use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding an asset. In terms of speculation, option buyers and writers have conflicting views regarding the outlook on the performance of an underlying security. For example, since a the option writer will need to provide the underlying shares in the event that the stock's market price will exceed the strike, an option writer that sells a call option believes that the underlying stock's price will drop relative to the option's strike price during the life of the option, as that is how he or she will reap maximum profit. This is exactly the opposite outlook of the option buyer. The buyer believes that the underlying stock will rise, because if this happens, the buyer will be able to acquire it for a lower price and then sell it for a profit.

Warrant

A warrant is issued by a company and gives the holder the right to buy shares at a particular time in the future at a price set in the present - the exercise price. In the meantime they can be traded on the stock market.

The aim is for the exercise price to be cheaper than the future price or projected market value. You can then sell the warrant for a windfall profit. But if the shares of the company never reach the exercise price, then the warrants are worth nothing. The warrant's value rises when the share price rises.

Options

An option works in a similar way but is bought from a market-maker - a professional buyer and seller of shares - rather than the company. There are two kinds:

• A call option gives you the right to buy shares in a particular company at a fixed price within a set period.

• A put option gives you the right to sell shares in a particular company within a set period.

Traditional options last for three months and you can either buy or sell the shares, or let the option lapse. There are also traded options which can be bought and sold in their own right.

Remember that warrants and options are two of the riskiest forms of investment and should be used only by those prepared for this.

Equity warrant 认股权证 
 这种权证赋予持有人在特定时期内以预先设定价格购买公司股票的权利（而非义务）。其中一种类型是由公司发行的，它赋予持有人在固定时期内以指定价格购买其股票的权利。认股权证通常与债券一起附带发行；认购权有助于降低债券利率，但如果期权得以执行，则将会稀释现有股权。另一种类型是备兑权证（Covered warrant  ）：一种由第三方（通常是银行或证券公司）发行的权证，它赋予持有人在指定时期内，以一个固定价格购买一家公司现有股票的权利。