Warrant

An instrument that gives the holder a right but not the obligation to buy ordinary shares at a pre-determined price (the strike price or exercise price) on a given date or within a range of dates.

This should not be confused with an Option, which applies to any security and not specifically to equities

Diluted Net Asset Value or Diluted NAV

Diluted Net Asset Value or Diluted NAV – Diluted NAV per share shows the net assets per common share after assuming the exercise of all outstanding warrants and stock options, and the conversion of convertible bonds, preferred stock, and any security that needs to be taken into consideration. Diluted Net Asset Value or Diluted NAV Click […]

WGBI

WGBI stands for the World Government Bond Index, compiled by Citigroup. Citigroup Index LLC designed, calculated and publish the indices, which may be licensed for use as underlying indices for OTC or exchange-traded structured products, including ETFs, swaps, warrants and certificates. The WGBI measures the performance of fixed-rate, local currency, investment grade sovereign (i.e. government) […]

Derivative

Derivative refers to a security whose value depends on the value of another asset. For example a warrant is a derivative based on the value of the equity that the warrant can be used to buy. Derivatives can be used to get exposure to the underlying asset without having to put up all of the cost […]

Subscription share

An instrument that gives the holder a right but not the obligation to buy ordinary shares at a pre-determined price (the strike price or exercise price) on a given date or within a range of dates. It is like a warrant but eligible for inclusion in an ISA

Strike price

The price at which an option, warrant or subscription share gives the right to buy an ordinary share also known as the exercise price

Exercise price

The price at which an option, warrant or subscription share gives the right to buy an ordinary share also known as the strike price

Option – as in derivative

An option is a derivative contract that gives the holder the right but not the obligation to buy a security at a fixed price (the exercise price or strike price) at a date or within a range of dates in the future This should not be confused with a Warrant, which specifically relates to equities.

Convertible Unsecured Loan Stock

A debt instrument that is convertible into the ordinary shares of a company at a fixed price at a date or within a range of dates in the future. Convertible Unsecured Loan Stocks are a bit like debt and a bit like equity. They have a value based on the value of their debt (see […]

Zero dividend preference shares

Zero dividend preference shares (ZDP) are Shares that will be redeemed at a fixed price at some defined point in the future (provided that sufficient assets are available). Their entitlement to the assets of the company rises in a straight line between their entitlement on issue and their redemption value. They are not entitled to […]

Glossary

Warrant