Why does a company issue stock warrants? Why not just issue stock, and if necessary, bonds? Understanding why a company has issued warrants, and to whom, is a very valuable piece of information on which savvy traders can make decisions. If the shares are issued to insiders or mainly to a loyal investor, there is […]
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There are significant and very important differences between stock warrants and stock options. Definitions of stock warrants you can find online provide a basic description of stock warrants. But, not knowing the differences between a warrant and option can severely impact a warrant trader or investor (and by that I mean not knowing what you […]
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If you understand call options and how they work then you are well on your way to understanding a stock warrant. They share many of the same characteristics, at least at a definitional level. Similar to a call option, warrants have a strike price and an expiration date, but unlike a call option neither the […]
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