TAP Real Estate Technologies Inc (RWAX)

[TenKay]

“If I bought TSLA at $1000 a month ago, and the price drops to $900, are they worthless shares?”

Oh boy…first…you are taking about publicly tradeable common shares above, not non-tradeable warrants.

Second, the entire purpose of a non-tradeable warrant is it represents the right to buy a share of stock at the strike price regardless of what the market does.

However, a non-tradeable warrant only has value when the pps is above the strike price…the “value” being the difference between the market price of the stock and the strike (or exercise) price of the warrant minus the original cost of the warrant.

This is like Stock Market 101 type stuff.

If you exercise a warrant when the stock price is below the strike price…you have instantly lost money.

Hence the warrant has no value…it is also referred to as being “under water”.

If the stock price comes back above the strike price it then regains value.

Why anyone would exercise a warrant at or below the strike price is beyond me.

But then…this is the OTC…and a lot of stuff is truly unexplainable.