Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

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’).

To obtain this right, the holder pays a premium that is lower than the underlying asset price e.g. a share or index. Warrants effectively offer investors the chance of higher returns at a higher risk.

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What is a stock warrant? How do warrants work?

What is a stock warrant? How do warrants work? I've been told they are similar to options; how? Then why not just call them options - what makes them different?
unknown
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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 date: 21st of December of 2018 How is this…
foobar
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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 warrants, the company will have 600 million shares…
Nathan
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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 why the fair value is shown differently. Can…
askolotl
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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 don't know if that means that that is what I…
tony in texas
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Can warrants to buy stock contain conditions or stipulations other than price?

Can warrants to buy stock contain conditions or stipulations other than price?
user454
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How to hedge against specific asset classes at low cost

I only do passive investment on index ETFs etc. I'm quite happy with that, but sometimes I want to hedge against specific asset classes in the mix. For example, let's say I do want to keep buying emerging economy equity index ETF, but I'm very…
Enno Shioji
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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 the suffix. I don't see those particular suffixes…
arcyqwerty
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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 do subscribe, where do they get the cash to do so?…
Flux
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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 general I really like the state of California; but we…
Silver Dragon
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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 $11.50. Currently NASDAQ broke the stock down under…
Tracey
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Interactive Brokers: IOPTS and list of structured products

As below, Interactive Brokers lets me trade "IOPTS". What are these? They also let me trade "Structured Products". I know what these are, and even know what an ISIN is (http://en.wikipedia.org/wiki/ISIN), but where do I find a list of structured…
user1731
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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 specific date. But, where can I find the price…
Jeffrey
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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 WSB warrants as the price that they all originally…
Ann G
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Cost basis allocation question: GM bonds conversion to stock & warrants

So back when the 2008-2009 financial crisis was in full swing, I bought some GM bonds at depressed prices. These have now been converted to stock and warrants in the new GM company; a while back I asked another question about how to calculate the…
Jason S
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