English Reader. Мишустина В.Д. - 56 стр.

     Warrants can be attached to a bond, providing a kicker that gives investors an
incentive to buy bonds with lower interest rates. Many Japanese companies, for
example, have issued bonds with equity warrants attached providing investors with
an opportunity to buy the companies' shares. Like other options, warrants are used
only when the price of the shares rises past the "striking price" - the price the warrant
holder pays for the shares.
     Warrants are like coupons in that they can be removed from bonds and sold
separately. Bonds that are traded with their warrants still attached are referred to as
cum, the Latin for "with", and those without their warrants are referred to as ex, the
Latin for "without."
     Another alternative for making bonds more attractive is to allow investors to
"convert" the bond into a company's stocks. In contrast to a detachable equity
"warrant" giving investors the right to buy stocks with their own funds, a convertible
bond gives the right to exchange the bond itself, at a fixed price and at a fixed time,
into a certain amount of the company's shares. The purpose of warrants and
convertible bonds is to offer investors a future reward - usually in the form of the
company's shares - for accepting a lower interest on the company's bonds. Obviously,
a country or international organization which does not have any shares would never
be able to issue warrants or convertible bonds.
     In the international markets, warrants are bought and sold in many different
currencies, most notably Swiss francs, U.S. dollars, and Japanese yen. Many of the
warrants traded on the New York Stock Exchange, for example, were issued in U.S.
dollars by American companies looking for funds to finance mergers and
acquisitions. Investors who buy these equity warrants are given the right to buy the
merged company's shares at a point in the future, assuming they become more
profitable.
     The real value of a warrant is its time factor. When a company issues a warrant
to buy its shares, it is providing a window of opportunity for investors to wait for the
share prices to rise. The more time the investor has to exercise a warrant, the more
valuable it is.

    15.1.5 Найдите ответы на следующие вопросы, попытайтесь понять их без
словаря:

    What right do most warrants give their holder is?
    What can warrants be attached to?
    When are warrants used by the holder?
    Are warrants much like coupons?
    What's another alternative for making bonds more attractive?
    What's the difference between a detachable equity warrant and a convertable
bond?
    In what currencies are warrants bought and sold in the international markets ?
    What's the real value of a warrant?
    When does a warrant become more valuable?

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