Quoted options to subscribe for shares: definition
Section 144 (8)(a) defines a `quoted option’ as an option which, at the time of the abandonment or other disposal, is listed on a recognised stock exchange. See CG55568 for the definition of recognised stock exchange.
A quoted option to subscribe for shares is a form of call option; that is an option to buy shares. The purchaser of the option is given the right to subscribe for shares in the company at a fixed price within a fixed period and usually within fixed times. Quoted options are often called share warrants. Like traded options there is a market in quoted options and the options themselves are bought and sold. Whether the options are ever exercised will depend upon the relationship between the exercise price and the value of the underlying shares.