header

What are the risks?

Standard Bank warrants and share instalments are primarily exposed to changes in the underlying share price. The value of Standard Bank Call warrants or share instalments usually increase as the underlying share price rises and usually decreases as the underlying share price falls. Standard Bank Put warrants or share instalments provide the opposite exposure, rising in value when the share price falls, and falling in value when the share price rises.

In addition to the exposure to changes in the underlying share price, the warrants and share instalments are exposed to changes in the expected volatility of the underlying share price; market interest rates; the expected dividends of the underlying share and the time to expiry.

Standard Bank warrants and share instalments are leveraged investments. Like other leveraged share investments, they provide more exposure to both increases and decreases in the share price when compared with investing directly in the underlying shares. Investors should understand that they may lose their entire investment in Standard Bank warrants or share instalments.

Standard Bank warrants and share instalments are not bank deposits. They are unsecured obligations of the Issuer and in the event of the winding up of the Issuer would rank equally with other unsecured creditors of the Issuer and ahead of subordinated debt and obligations to shareholders.

Further information regarding the risks associated with warrants is set out in the Common Terms Document and other relevant annexures and/or supplements.