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2 comment(s). Last comment by muchamp 2022-03-18 11:27
Posted by muchamp > 2022-03-18 11:27 | Report Abuse
meaning if dividend is more than expected, warrant holder will suffer loss after ex-date as a result?
No result.
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CS Tan
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Thkent91
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Posted by Thkent91 > 2022-01-03 20:03 | Report Abuse
Not true on this part: Other corporate actions and their impact
In determining the issue price of a warrant, an issuer normally takes into account the expected dividend from the underlying. If the dividend payout is in line with what was expected, the warrant price will be unaffected. However, if the dividend payout is more than expected, the underlying price will decline more than expected on ex-dividend date, and the warrant price may immediately follow suit to decline (for call warrant) or rise (for put warrant).
https://www.bursamalaysia.com/reference/faqs/securities/faqs_on_structured_warrants