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exwannabe

06/13/23 1:46 PM

#601117 RE: CrashOverride #601114

In reality it makes no sense for warrant holders to sell if the price will appreciate significantly...


Yup. But how do they know this huge price jump is going to happen? Maybe they just take their profits off the cheap shares and on to the next play.

it does behoove them, from tax standpoint, to convert warrants to shares now before a large increase in the share price occurs.


It starts the long term cap gains clock, but does not change the taxable gain/loss. OTOH, it risks the cash prior to the binary event when they could just wait it out.

I am fairly sure all the warrant holders are a bit more in touch with the investment than just going by "I know it will go up" concept.