BAT HQ boss, since the price so low now, just privatise la....you give 25% premium, more than half support you and you can join your fellow friend jti and say bye bye to malaysia bursa...keep the dividend to yourself....
You guys must understand that Structured Warrants are the most dangerous piece of paper that ever existed. Only the Issuer gains. 99% of the time people lose money trading Structured Warrants.
In fact globally they are called 'Contract For Difference' or CFD's. They are simply a BET on the share of a company. CFD's on Equity are banned in many major markets like USA, Hong Kong, India. In fact US citizens are banned from trading in CFD's on Equity anywhere in tge world.
Check for yourself. Don't take my word for it. I say this because these so called Structured Warrants (CFD's) are the reason the IB manipulates the price of shares. How can you permit anyone else to decide how a company should be run ?
The investing public needs to be aware and educated about the insruments they put their hard earned money into.
Therefore, I am listing some links that give you a fair idea of Derivatives. In Malaysia, we have what is called "Structured Warrants". If you google Structured Warrants, the only links you come up with are Malaysian and Singaporean. This instrument does not exist anywhere else in the world. Why then, is it called "European Styled Cash Settled" ?
These instruments are actually "Contract For Difference" or CFD. Which basically means a "BET". More precisely, a Bet ON a Bet. Typically when we buy the share of a company,we are assuming, with some understanding of the business and its prospects its value at a future date. That could be termed a calculated bet.
However, when you buy a CFD, you are Betting against the Bet someone (An Investment Bank) has taken on the value of a share at a future date. Typical to Malaysia, that Investment Bank (IB) is not required to tell you what he does to market make the share so that he does not lose.
In what sense of the word is this called Investing ?
There is NOT EVEN ONE Structured Warrant issued so far, where the Settlement value is more than the Break-even price for the issuer. We have the data, if anyone including the authorities require us to prove it to them. BUT with a clear understanding that if we are right, they will take corrective action.
Simon, Yes it is. Not only that, the issuer is not required to disclose any information about the Market Making or Hedging it does.
No Disclosure Norms !
Every company is required to disclose any and all trades in its own shares. CFD's have ZERO value by itself. It's based on an underlying Asset, the share of a company. Why then, are the issuer's of CFD's not required by law to disclose their dealings in that Asset ?
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....
wkc5657
289 posts
Posted by wkc5657 > 2021-01-08 14:18 | Report Abuse
BAT HQ boss, since the price so low now, just privatise la....you give 25% premium, more than half support you and you can join your fellow friend jti and say bye bye to malaysia bursa...keep the dividend to yourself....