Family Room Entertainment Corp. (FMYR)

[rebelgirl]

A warrant is a security that allows the holder to buy shares of common stock from the Company at a predetermined price (i.e., the exercise or strike price), for a defined period time (i.e., the exercise period). Thus, if at any time during the exercise period the market price of the stock rises above the exercise price, the holder of the warrant could buy shares of stock at the exercise price and sell them at the market price, thereby making a profit. Otherwise, the warrant will simply expire at the end of the exercise period.