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Questions tagged [warrants]

A warrant gives an investor the right, but not the obligation to buy or sell a specific underlying asset at a particular price (the ‘strike price’) within a specified timeframe (the ‘expiry’).

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I don’t understand warrants. Why can I sell calls for profit without reaching strike?

I understand the basic concept which is explained everywhere. But apparently this is not what happens. It is written everywhere, that the difference between strike price and actual stock price is my ...
user69725's user avatar
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how much will it cost me to exercise my HUT.WT.A

I have invested in HUT8 warrants over last 14 months I would like to exercise them to convert to shares in stock. My HUT.WT.A are expiring June 15/2023. My broker Questrade enquired with Hut8 investor ...
Ken Calder's user avatar
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Correct evaluation of warrants

The warrant below (on TR) gives me the right to sell a stock for the strike price (at the day of expiry). At the current market price of the underlying of 744 USD and a strike price of 1150 USD, the ...
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Rights vs Warrants vs Options

Why would a company issue rights instead of warrants (and vice versa)? Why would a trader or investor buy/sell rights instead of warrants or options (i.e. which situations make one of these more ...
UserThisIsA's user avatar
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What happens to stock warrants on acquisition?

I am invested heavily in warrants within a mid-cap biotech company. Due to the cash position of many large-cap biotechs like Moderna and Pfizer, I am assuming they will start to make some acquisitions ...
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Preferred Stocks: Why do you have to sell the detachable warrant to receive dividend?

I'm reading about detachable warrants and it says that: Because they are attached to preferred stock, investors may not be able to receive dividends for as long as they hold the warrants. (https://...
user5646514's user avatar
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1 answer
101 views

What are the advantages of warrants over options?

Is there any advantages of trading warrants over options?
huab's user avatar
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Is a Brokerage obligated to sell "In the money" Warrants prior to expiration?

Company Press Notice of the public warrant's pending expiration date was not made. Nor was the broker's notice of the pending expiration received until after the expiration date and time. Before ...
Lordstown's user avatar
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2 answers
251 views

Why are warrant liabilities considered a financial loss?

If a company says they lost $2M in Q1 because of: "non-cash mark-to-market increase in warrant liabilities" As I understand warrants, they allow the holder to purchase the shares at the ...
pstatix's user avatar
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1 answer
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Why do SPACs issue units instead of shares and warrants only?

From my understanding, SPAC units are sold during SPAC IPOs. Later, these units can be converted into shares and warrants. What I don't understand is: why is it necessary to issue units in the first ...
Flux's user avatar
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SPAC: FTCV -> eToro: What may become of my FTCV shares post merger?

After yesterday's announcement that eToro and FTCV are planning on merging, FTCV shares became available to eToro users. Target for the merger of the SPAC and eToro will be Q3 2021. Opening a position ...
dev_does_software's user avatar
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Question about Call warrant

I have a question about whether I understand this correctly. Take the following warrant: Call 19.03.21 Tesla 540 Currently traded for 11.27€ (13.67USD). Am I correct to assume that once this call ...
ReRed's user avatar
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Why do SPAC warrants only become exercisable 30 days after the de-SPAC transaction?

I noticed that most (all?) SPAC warrants only become exercisable on the later of: (a) 12 months after the SPAC's IPO date, (b) 30 days after the de-SPAC transaction. I am surprised by this uniformity ...
Flux's user avatar
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2 votes
4 answers
3k views

Why are stock warrants sometimes sold for less than their intrinsic value?

CIIG Merger Corp (NASDAQ: CIIC) is a SPAC shell company that recently announced it had entered into a merger agreement with the electric vehicle startup Arrival. CIIG Merger Corp also issued warrants (...
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Hedging warrants & cashless exercise

For a given SPAC where the strike on the warrants is 11.50 and each warrant translates to 1 common share, if the company opts for cashless exercise and announces it will deliver 0.37 shares for each ...
Air's user avatar
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-1 votes
4 answers
786 views

Why buy stock warrant for $2, if underlying stock trades at $3?

today for DOC.V (CloudMD), stock price is $3. warrant price is $2. warrant expires on 02 JUN 2022. "Each whole Warrant shall entitle each Warrantholder thereof, upon exercise at any time after ...
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6 votes
3 answers
2k views

Two warrants: Same exercise price, different market price. Why?

Consider these two warrants. Both have the same underlying stock and the same exercise price, but still they have different fair value, and different stock price. Why? Especially I do not understand ...
askolotl's user avatar
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1 answer
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Computing the cost basis of converting trading warrants to common stock

I received a Voluntary Warrant Exercise offer to convert 15 warrants to common shares at $11.50 per share for a total cost of $173. The warrants held were trading at $18 each with a cost basis of $32 ...
Raymond Torres's user avatar
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2 answers
268 views

Are Warrants traded on normal stocks exchanges and secondary markets?

Hello I have a theoretical question. Are warrants traded as listed instruments on any exchange. And can the standard big stock exchanges like NYSE trade warrants?
Dr Phil's user avatar
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What are prepaid warrants used for?

I understand the how regular warrants (i.e. non-prepaid warrants) work, and what they could be used for. However, I don't understand what prepaid warrants are used for. Suppose a company issues a ...
Flux's user avatar
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4 votes
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What do index ETFs do when an index constituent has a rights issue?

For index-tracking ETFs, what happens when one of the index constituents has a rights issue? Do the ETFs subscribe to the rights issue, do they ignore the rights, or do they sell the rights? If they ...
Flux's user avatar
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Warrant extension - would this have any tax implications?

If someone has warrants to purchase shares in a private C corp in the US, if they were about to expire and they got the company to agree to extend them, does this have any tax implications? These are ...
g491's user avatar
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1 answer
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How do I determine the ratio of warrants required to acquire common stock?

Is a warrants exercise price the same as the strike price? How do I determine the ratio of warrants required to acquire common stock?
hooscfp01's user avatar
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Why would a company issue a put warrant at this strike price?

On interactive brokers I was looking at stock warrants for BP. I saw a put warrant with a strike price of 600 GBP and its price was 5.12 EUR with commission. Why would this warrant be issued? Isn't ...
John's user avatar
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How do you know if stock warrants are american or european style?

On interactive brokers i was looking at some put warrants for GE which are being traded on the frankfurt exchange but i don't know if i can exercise them when i want, since I don't know if the ...
John's user avatar
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2 answers
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Does daily leverage certificate value decrease over time?

I see that there is a type of investment called Daily Leverage Certificate which allows investor to buy a certificate tracking an index with multiple leverage factor. Meaning to say that if the index ...
rcs's user avatar
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1 answer
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Optimal sell strategy for warrants received as a bonus when I don't want long-term exposure to the underlying equity

I received a sizeable amount as a bonus in the form of European-style call warrants. Because I don't fully understand every aspect of them and because the underlying security is one I have no faith in ...
Lilienthal's user avatar
2 votes
0 answers
83 views

Status of employee warrants awarded after an LLC becomes an S-corp

I was hoping to get some advice on how to approach this issue before I seek answers within my organization and perhaps legal consultation: Our company was originally owned by our initial investor's ...
user403429's user avatar
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1 answer
50 views

Understanding Put Warrants on SET (Thai) exchange

I have having trouble understanding exactly how these derivative products work. For example this one. I understand that the European exercise style means that they can only be exercised on the ...
Spehro Pefhany's user avatar
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1 answer
674 views

What is the exact meaning of the exercise price of warrants as stated in a 6K form?

NVCN stated in their 6K form the following statement 10,273,972 Series C Warrants were originally issued in the 2017 Public Transaction, and 5,388,706 remain issued and outstanding at the close ...
KingsInnerSoul's user avatar
3 votes
1 answer
5k views

How to redeem California tax income return warrants?

During 2016, I have overestimated my state taxes; as a result, the state of California have issued a "tax refund warrant". This is what it looks like (with personal identifiers removed): So, in ...
Silver Dragon's user avatar
2 votes
2 answers
1k views

Can a warrant be "cancelled" by its issuer?

I am wondering if a bank that sells derivatives (Warrants, Turbos ...) can "cancel" their products after a very bad event. Example : Today, I buy 5000 PUT warrants. Then tomorrow, a market crash ...
Sauvagerie's user avatar
1 vote
1 answer
2k views

how exactly do companies make money from warrants?

I'm confused. I remember reading a file for secondary offering from a company and it said "We will not receive any proceeds from the sale of these shares other than proceeds, if any, from the exercise ...
sculpter's user avatar
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3 votes
1 answer
544 views

Finance, Social Capital IPOA.U

Brought 1000 shares (units) of IPOA.U on IPO day at price of $10.26 for $10,260.00. Each of these units contains 1/3 of a warrant (or 333 whole warrants) exercisable now or at a later date for $11....
Tracey's user avatar
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1 vote
1 answer
642 views

How many warrants do I need to exercise to get a stock?

I am getting the following information from the link http://www.nasdaq.com/symbol/ipoa.ws Social Capital Hedosophia Holdings Corp. Warrants, each whole warrant exercisable for one Class A Ordinary ...
vinayag's user avatar
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1 vote
1 answer
2k views

What is the stock warrant's expiration date here?

https://www.etrade.wallst.com/v1/stocks/snapshot/snapshot.asp?symbol=IPOA.WS SOCIAL CAP HEDOSOPHIA HLDGS CO WT EXP 000022 IPOA.WS: NYSE How do I interpret the expiration date here WT EXP 000022 ? ...
vinayag's user avatar
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0 votes
1 answer
1k views

What does it mean when a company "Announces Pricing of Public Offering of Convertible Preferred Stock and Warrants"? [closed]

I have read that ImmunoCellular Therapeutics (IMUC) announced: ImmunoCellular Therapeutics, Ltd. ("ImmunoCellular") (NYSE MKT: IMUC) today announced the pricing of an underwritten public offering ...
KingsInnerSoul's user avatar
6 votes
1 answer
1k views

Reasons for a warrant's intrinsic value and price not adding up?

I'm looking at a specific (American-style) warrant of a company and let's say I see something like the following: Warrant Bid/Ask: 0.30$/0.35$ Strike Price: 15$ Current stock price: 16$ Expiration ...
foobar's user avatar
  • 163
2 votes
1 answer
386 views

Warrant shares/UNIT

I am having stock shares in a Swedish company called Nordic Mines, which resolved recently on a rights issue of shares and warrants. Here is what they intend to do in summary: On the record date for ...
Ammar's user avatar
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1 vote
0 answers
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Using options to profit from underlying stock and warrants

I'm a suffering shareholder and have underlying stock and warrants (3 years remaining) and want to know how to profit from them using a option or hedge strategy. The current stock price is 30% below ...
KKlein's user avatar
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3 votes
2 answers
8k views

Where do I find the exercise price and date for warrants?

Some stock exchanges offer 'warrants'. For example, on TSE, you can find swy.wt.a. My understanding is that this security gives you the right to purchase the regular stock at a specific price, until a ...
Jeffrey's user avatar
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4 votes
1 answer
4k views

What do the suffixes on stock symbols indicate

For example, this article mentions symbols VZ.N, CVC.N, TWC.N, and CCOI.O. Are these related to share classes and/or warrants? Each of these symbols also seem to exist and can be referenced without ...
arcyqwerty's user avatar
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2 votes
1 answer
120 views

What forms (S-1, 8-K, etc) and keywords in news headlines signify dilution?

I'm trying to create a program to scan a news RSS feed for stocks that are in the process of getting diluted so that I do filter the market down to a few stocks and then do extra research on them. My ...
bigpotato's user avatar
  • 751
0 votes
1 answer
61 views

US company Warrants issued in Europe

Can one bank issue another companies warrants ? I have been searching for warrants on US companies and turns out that a lot of these warrants are issued in Euro instead and by different banks rather ...
christian Martin's user avatar
2 votes
2 answers
487 views

Shorting diluting stocks

If a stock just submitted an 8-K that shows that it's diluting (has "cashless exercises", "dilution", and "warrants" in it), shouldn't that mean it's bound to go down (with a high level of likeliness)?...
bigpotato's user avatar
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-2 votes
1 answer
432 views

How are derivatives different from bucket shops?

How are derivatives like covered warrants or CFDs different from the bucket shops that were made illegal in the US? Should I worry that some regulator decides that my "market maker" is an illegal ...
user avatar
6 votes
2 answers
77k views

Will a company's stock price be affected when warrants are issued, or exercised?

A company has 500 million outstanding shares, and it issued 100 million warrants 10 years ago. Assume that none of the warrants has been exercised yet. If tomorrow all the holders exercised their ...
Nathan's user avatar
  • 233
5 votes
1 answer
1k views

Exercising GM warrant

I have some GM WSA warrants and WSB warrants. Can someone please explain how to exercise them? I have read that they were issued with strike prices of around $10 on the WSA and $18 on the WSB, but I ...
tony in texas's user avatar
0 votes
2 answers
158 views

Which instrument to use to trace the Aussie Stock Market?

The best way to achieve market returns is to get into a product that traces the market, right? So I have found two such potential products to trace the ASX 200. The first is an ETF, STW.AX (SPDR 200 ...
Victor's user avatar
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3 votes
1 answer
1k views

Calculation of Loss for GM Bonds and Cost Basis of New Issues

In 2011 GM bonds were converted to new GM stock and series A and B warrants. For tax purposes, I have read where others reported the cost basis of new shares received for the new GM and the WSA and ...
Ann G's user avatar
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