guarantee
Warrant is a call option issued by a joint stock limited company to subscribe for its shares, which gives the holder the right to buy certain shares of the issuing company at a pre-agreed price within a certain period of time. For financing companies, issuing warrants is a special means of financing. The warrant itself contains an option clause, and its holder has neither creditor's rights nor equity rights to the issuing company before subscribing for shares, only the right to subscribe for shares. Nevertheless, the issuing company can raise cash by issuing warrants, and it can also be used as compensation for underwriters when the company is established.
According to different issuers, warrants are divided into equity warrants and covered warrants, which belong to narrow sense and are issued by listed companies, while covered warrants belong to broad sense and are issued by third parties other than listed companies (generally securities companies, banks, etc.). ) Do not increase the share capital of the joint-stock company.
Judging from the exercise status, warrants are also divided into European and American warrants. Holders of American warrants can exercise their rights at any time from the listing date to the expiration date, while holders of European warrants can only exercise their rights on the expiration date. European warrants are the most common stocks in Hong Kong.