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How Warrants Work

A warrant gives its owner the right to order a company to issue a new share. In addition, it gives the owner the right to buy the newly issued share at a predetermined price. If the issuer has registered the underlying share with the SEC, the owner can immediately sell the newly issued share on the public market. Obviously, he’ll want to do so only if the market price is more than he paid for the share.

Continue reading How Warrants Work

A warrant gives its owner the right to order a company to issue a new share. In addition, it gives the owner the right to buy the newly issued share at a predetermined price. If the issuer has registered the underlying share with the SEC, the owner can immediately sell the newly issued share on the public market. Obviously, he’ll want to do so only if the market price is more than he paid for the share.

Continue reading How Warrants Work
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How Dilution Works

Dilution is commonly misunderstood by beginning and even intermediate investors. Yet it can have a major impact on the price of a small- or micro-cap stock. The phenomenon occurs when a company issues additional shares, which increases its total shares outstanding.

Continue reading How Dilution Works

Dilution is commonly misunderstood by beginning and even intermediate investors. Yet it can have a major impact on the price of a small- or micro-cap stock. The phenomenon occurs when a company issues additional shares, which increases its total shares outstanding.

Continue reading How Dilution Works