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 WorkA 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