臺大管理論叢 NTU Management Review VOL.30 NO.1

195 NTU Management Review Vol. 30 No. 1 Apr. 2020 (2009), Chou and Wang (2009, 2011), who analyze the disadvantages of individual investors in Taiwan's stock, index option, and futures markets, respectively, this paper shows that individual investors are also at a disadvantage in Taiwan’s warrant market. Finally, this paper investigates the factors that affect the losses of individual investors in Taiwan’s warrant market, and finds that individual investors suffer higher losses if they trade out-of-the-money or American warrants, the warrants whose issue prices are lower, and the warrants whose underlying stocks are more volatile or have lower market capitalization.