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Re: buysellrepeat post# 144504

Wednesday, 05/01/2019 2:35:17 PM

Wednesday, May 01, 2019 2:35:17 PM

Post# of 192127
I get that but warrants are like multipliers for your investment. If the pps get to 7.65 I can use my warrants to buy shares. I will use my warrants to fund the purchase of the shares. 100% increase to the stock pps and after strike prices are meet warrants are going to be worth 400% off the 100% increase from the stock. Verb has cashless warrants. Here’s a fools example.

Suppose Foolish Enterprises currently trades for $20 per share. The company also has warrants trading on the open market, which allow you to buy the stock for $30 per share, 10 years from today. These warrants currently trade for $2 each.

Current stock price: $20 per share

Current warrant price: $2 per warrant

Warrant exercise price: $30 per share. A warrant is profitable if the stock price exceeds the cost of the warrant plus the exercise price at expiration. So, in this case, a warrant would be a profitable investment if shares traded above $32 ($30 exercise price + $2 warrant price).If, for example, Foolish Enterprises traded for $40 per share in 10 years, the warrants would be worth $10 each. The return on the warrant would be 400% -- a good return, no doubt. 100% increase per share equals 400% increase to warrants and so-forth.

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