What are Warrants?
A warrant is a form of derivative that derives its value from an underlying instrument. Some give holders the right to buy or to sell the underlying instrument such as a share or ETF to the warrant issuer for a particular price.
Why trade Warrants?
Warrants can help investors achieve leveraged returns, diversify into a market or sector, protect the value of underlying assets or earn extra income.
Anne Fulwood talks to Asanth Sebastian, ASX
Instalments warrants have for a long time been a popular investment alternative to shares basically they give the investor the opportunity to enter the market at a lower cost, with less capital, and yet still derive some of the benefits including all the dividends, franking credits and potential capital growth associated with the shares themselves.