Forum Archive Index - September 1999

["Brent Wheeler" <brentw@bwcl.co.nz>]

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<�DIV><�FONT size=2>For What it is worth Lindy<�/FONT><�/DIV>

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<�DIV><�FONT size=2>Rights - if you own some shares and the company issues some 

rights, say 2 for 1, then for each share you own you could "exercise"&nbsp; your 

right and buy 2 more for every one you own at the specified price.&nbsp; An 

advantage which the non owning punter does not have.<�/FONT><�/DIV>

<�DIV>&nbsp;<�/DIV>

<�DIV><�FONT size=2>Options - come in two species:<�/FONT><�/DIV>

<�DIV><�FONT size=2>A "call option" - the right, but not the obligation, to 

purchase a share at the price specified in the call option.&nbsp; If that price 

is below current market then you get "cheap" shares. If it is not you don't 

bother exercising the option.<�/FONT><�/DIV>

<�DIV>&nbsp;<�/DIV>

<�DIV><�FONT size=2>A "put" option. Precisely the reverse.&nbsp; The right but not 

the obligation to sell shares at the price specified in the option.&nbsp; If 

that price is above market value there is money to be made, if not, you don't 

exercise the option.<�/FONT><�/DIV>

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<�DIV><�FONT size=2>Warrents - yuk - so idiosyncratic case by case as to defy 

simple description.<�/FONT><�/DIV>

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<�DIV><�FONT size=2>Hope this helps.&nbsp; Other share chatters will pull up my 

simplistic bits I'm sure<�/FONT><�/DIV>

<�DIV><�FONT size=2>B<�/FONT><�/DIV>

<�DIV>&nbsp;<�/DIV>

<�DIV><�FONT size=2><�BR>Dr Brent Wheeler<�BR>Director<�BR>Brent Wheeler &amp; Co. 

Limited<�BR>AUCKLAND<�/FONT><�/DIV><�/BODY><�/HTML>