ASSIGNMENT

Name: Muhammad Faizan ID No. 9948

Dividend Warrant
Dividend is the share of profit distributed by company out of it’s earning to the company’s shareholders.
It is basically percentage earning of shareholders out of their investment in a company.

Dividends are mostly paid annually but can be quarterly or interim too.

Information of Dividend Warrant

A dividend warrant normally contains the following information:

S.N Information Meaning

o
1 Name of the company
2 Bank Details
3 Unique Warrant number
4 Details of shareholders
5 Exercise price
6 Dividend warrants are turned
into cash just like a cheque
7 You just need to deposit it
with a filled bank deposit slip
in the bank in your Bank
Account
8 On expiry of warrant you need
to fill the re issuance form and
re issue the warrant from the
company
9 It also has an expiry date. It is
normally valid for six months
just like a normal cheque
10 It is very liquid (when
received) and can readily be
converted into cash
Complete legal name of a firm, the title by which a formally
organized or incorporated firm is known as a legal entity
Identify a bank account, and are used when making or
receiving a payment, now especially electronically
it is a unique identifier unlike a collar number
Shareholders are the owners of companies limited by shares
The exercise price is the price at which an underlying security
can be purchased or sold when trading a call or put option,
respectively
A dividend paper warrant is a financial instrument in form of
a cheque that is issued by a quoted company to its
shareholders through which dividend is paid to them
A deposit slip is a small paper form that a bank customer
includes when depositing funds into a bank account. A
deposit slip, by definition, contains the date, the name of the
depositor, the depositor's account number, and the amounts
being deposited
Warrants are generally issued by the company itself, not a
third party, tend to have much longer periods between issue
and expiration
Unless a cheque is presented within a reasonable time after
the ostensible date of its issue, it should not be honoured.
Generally, speaking a cheque presented more than six
months after the ostensible date of its issue
An asset that can readily be converted into cash is similar to
cash itself because the asset can be sold with little impact on
its value