With the news that the government is selling a large portion of its stake in General Motors (GM) back to the company at a price above the close yesterday, both GM and Ford opened higher this morning. Ford has now traded back to almost flat at this point (10:20 am EST). With the run higher […]
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Stock, or equity, warrants provide a trader or investor the opportunity to use leverage to trade or invest in the fortunes of the underlying company. To often I’ve seen a comparison of two alternative investment vehicles, buying the common stock or buying the warrants. The story always goes the same, if the stock is trading […]
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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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