Others   

Relationship between stocks and warrants

if the capital outlay is relatively high and exercise date is far away, the mother share is preferred -   it pays dividends..

if the capital outlay is small (exercise price is high) and exercise date is closed, probably investors will buy up the warrants and decide to exercise later,.

 

Market sentiment wrong judement!

terencefok      ( Date: 07-Jan-2010 20:29) Posted: Hi, anyone can explain why in the case of a profitable company with no debt, the warrant trades at a discount to the stock price (after factoring in the exercise price)? Both are reasonably liquid (vol. above 1m). Thanks

 

Hi, anyone can explain why in the case of a profitable company with no debt, the warrant trades at a discount to the stock price (after factoring in the exercise price)? Both are reasonably liquid (vol. above 1m). Thanks