As securities with rights to take over stocks of a certain company at a striking price (takeover price) fixed in advance during exercise period, Warrants are securities that have separated only warrant from BW. In the past it was possible to issue non-separable bond with warrant, however, a market for Warrant was opened in July 2000 according to revision of pertinent regulations which allow separable bond with warrant. Meantime, Right means the one for shareholders to preferentially take over such stocks that are newly issued at paid-in capital increase according to the commercial law, and the right as a form of securities is circulated as a certificate, and the market for the right was opened in January 2002.
Method of trading Warrant and Right is similar to that of stock certificate but there is no price limit considering high leverage effect and thus market order trading is not allowed.
|classification||Stock certificate||Subscription warrant||Subscription right certificate|
|types of market||stock market (regular, after-hours)||Market for Subscription warrant(regular)||Market for Subscription right certificate(regular)|
||Limit quotation||( same as left )|
|short sale||Covered short sale allowed, up-tick rule applied||( same as left )||( same as left )|
|daily price limit||±30%||N/A||( same as left )|
|base price||closing price of previous day||N/A||( same as left )|
|quotation price limit||7 quotation price units||( same as left )||( same as left )|
|trading principle||Principle of auction||( same as left )||( same as left )|
|Circuit Breakers||applicable||market suspended under C/B||( same as left )|
|trading halt of individual issue||in case of rumor, etc.||in case the object certificate is suspended||( same as left )|
|block trading||allowed||N/A||( same as left )|
|Substitute securities||appointed||N/A||( same as left )|