Replies to post #6034 on Cemtrex Inc (CETX)

[John Bates]

The warrants are like stock options with 5 years of time value. It offers people leverage and a limited downside, and thus gets a premium. How much exactly is somewhat arbitrary, and affected by supply/demand.

[GeT_NiCE]

6.31 is the exercise price of the warrant.

That is, if you own one (1) warrant then you own the right to buy one (1) share of common stock ($CETX) for $6.31.

When you trade the warrant (buy or sell), you trade that contracted right, not the shares.

Warrants function very similarly to a call option (in this case with a 5 year expiration and a strike price of $6.31).

[John Bates]

As far as they guy who wants to sell his Preferred goes, maybe he just wanted to get the warrants and thinks the 10% is too mundane for him.