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Is there any advantages of trading warrants over options?

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Warrants are essentially long term options. There are several differences:

  • The company issues warrants and keeps the capital raised from them. If exercised (call warrants), the company issues new shares.

  • Options are based on 100 shares. They trade on option exchanges and the money is between two traders. You can buy as few as one warrant.

  • Options tend to be more liquid, particularly those of nearer term expiration.

  • Option contracts are standardized. Warrants are not.

  • Exercised warrants lead to dilution. Options do not.

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