Tuesday, May 24, 2022 3:05:28 PM
Warrants cause dilution because a company is obligated to issue new stock when a warrant is exercised. That is very easy to understand.
"A stock warrant gives holders the option to buy company stock at the exercise price until the expiration date and receive newly issued stock from the company."
"A stock warrant gives holders the option to buy company stock at a fixed price, the exercise price, until the expiration date and receive newly issued stock from the company."
"Exercising a call option does not involve issuing new stock since a call option is a derivative instrument on an existing common share of the company."
So there is a big difference between a warrant and a call option.
Everyone better beware of Mersky.
IG
The First Casualty of Emotion is Reason.
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