InvestorsHub Logo
Followers 1321
Posts 26908
Boards Moderated 6
Alias Born 12/10/2012

Re: WHITTENHALLJR post# 57

Thursday, 01/24/2019 8:53:09 AM

Thursday, January 24, 2019 8:53:09 AM

Post# of 285
$CLDCF: Its not a linear relationship... but is influenced

But the Warrant price hinges on where the Commons are and go.

They somewhat act in tandem as there is an Exercise Date on the
Warrants but not on the commons.

Most stock warrants are similar to call options in that they provide the holder the right, but not the obligation, to buy shares of a company at a specified price (strike price) before the warrant expires. Unlike an option, a warrant is issued by the company instead of an option writer.

When a warrant is exercised, the stock that is purchased upon exercising the warrants needs to be issued new by the company. ... If you own common stock in a company that also has warrants outstanding, any exercise of the warrants will increase the number of outstanding shares thereby diluting the existing shareholders.

Warrants are sold by companies as a way to raise capital. Although a company could sell stock to raise money, the Securities and Exchange Commission regulates the number of shares a company is allowed to issue. Some companies will issue warrants as a way to sweeten a deal during a takeover or restructuring.

Do some research on the net to answer any additional questions you
may have or talk to your Financial Advisor







GO $CLDCF



Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.