Warrant refers to the securities issued by the issuer of the target securities or a third party other than the issuer, and the agreed holder has the right to buy or sell the target securities from the issuer at the agreed price within a specified period or a specific maturity date, or collect the settlement difference by cash settlement.

During the two years of 1995 and 1996, the Shanghai Stock Exchange issued warrants for Jiangsu Da Yue and Fuzhou Dongbai, and the Shenzhen Stock Exchange issued warrants for Wu Fenghuang, Xiang, Xia Haifa, Gui Liugong and Min Mindong. After these warrants expired, due to the market downturn, the rights issue could not be implemented, and the management had a whim and the warrants were postponed for half a year. This kind of delay provided the dealer with the theme, which led the market to speculate on warrants again. For example, 1995, the share price of Guiliugong is only 2.50 yuan, and the allotment price is 2.60 yuan, but the price of A2 warrant is more than that of 2 yuan. In other words, investors who buy warrants would rather spend more on 4 yuan's "futures" shares per share than 2 yuan's spot shares. Guilin Liugong A2 warrant price 1 yuan, the highest in 4 yuan. The share price of Da Yue, whose share price is around 7 yuan, is as high as 15 yuan, showing a miracle of rising by 637% in one day.

This time, Bo silly didn't last long. Half a year later, due to the market downturn, some stocks that issued warrants have fallen below the matching price, and warrants are worthless.

To put it bluntly, speculating warrants is a bit like passing a parcel, not only knowing how to make money, but also knowing how to stop losses. Don't be insatiable, and don't be carried away by the victory of making money for a while, because warrants are extremely risky! Especially when many people only see huge profits and completely ignore risks, risks are gradually accumulating.