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Source: Deutsche Börse AG


There are two types of warrants: "traditional" warrants and so-called naked warrants. Traditional warrants are issued in conjunction with a bond (known as a warrant-linked bond), and represent the right to acquire shares in the entity issuing the bond. In other words, the writer of a traditional warrant is also the issuer of the underlying instrument. This type of warrant is traded on the stock exchange and is eligible for a listing in Amtlicher Markt (Official Market). Naked warrants are issued without an accompanying bond, and, like traditional warrants, are traded on the stock exchange. They are typically issued by banks and securities houses. The writer of a naked warrant need not be the issuer of the underlying instrument.

Warrant-linked bond

Unlike normal bonds, warrant-linked bonds are issued with warrants that entitle the bearer to buy shares in the issuing company at a predetermined price, usually following a given period. Once the exercise period has begun, the investor can separate the warrants from the bond and sell them on the stock exchange. The bonds are then listed with the addendum "ex". Issuers benefit because the interest rates on warrant-linked bonds are relatively low. Moreover, if the warrant is exercised, their shares will be sold to the investor at a relatively high price. Investors benefit from the fixed interest payments on warrant-linked bonds, and from a potential increase in the stock price.

Window dressing

The performance of an investment fund is measured using a benchmark such as a stock or an index. At the end of the year, or just before a reporting date, institutional investors will try to exert a short-term influence on this benchmark by placing appropriate orders. If a fund has achieved an above-average profit for the year, the fund manager will attempt to depress its performance slightly during the final days of trading so that part of the profit can be shifted to the following year. If a fund is not performing particularly well, the fund manager may purchase individual securities, and thereby drive up their prices, in the attempt to maximize the fund's profit during the final days of trading.


The WKN (“Wertpapierkennnummer”) is a six-digit alphanumerical code for the identification of a security. It is issued by the Institute for the Issuance and Administration of Securities in Germany (Securities Information).

Meanwhile, the worldwide standard for securities identification, ISIN, has been introduced in Germany.

The WKN is included in the ISINs of securities registered in Germany. The twelve-digit ISIN consists of a two-digit country code, a nine-digit national identification code as well as a check digit. The sixth to eleventh digits represent the WKN.