Warrants Corporate Investment And Financing

Since the American Light & Power Company issued the first warrant in 1911, the warrant has already become the indispensable member in the international security market. The western developed countries, Hong Kong and Taiwan have already participated in the warrant trade. According to the statistical data, at least 42 members of WFE have issued warrant. At August 22 2005, the warrant has return to the Chinese security market.The return of the warrant will partly weaken the traditional monetary assets, break the financial monopoly of bank, and promote the process of financial industrialization. The basic restraint of company's investment and financing will change with the innovation of financial instruments. Thus it is necessary to rebuild the theory frame of the behavior of company's investment and financing.This text is divided into five chapters:Chapter one discusses the relationship between the warrant and economic development. The emergency and development of the derivative are inevitable requirement of the development of fictitious economic, and the characteristic of the warrant proves that it is suitable to be a breakthrough in the development of the derivative. In conclusion,the warrant has both positive factors and negative influences.Chapter two probes into the application of the warrant in the company's financing. At first, the paper describes the function of the warrant in financing. Secondly, it studies the expansion of the financing theory after the introduction of the warrant. Finally, it sketches the financing tactics with the warrant.Chapter three probes into the application of the warrant in the company's investment. It point out the function of the warrant in investment. Then it argues the impact of the warrant to the major...