Occasionally, when you look through a mutual fund’s holdings, you’ll come across securities called warrants. What are they, and why would anyone want them?
Warrants are almost identical to stock options. These securities allow the holder to buy a company’s stock at a predetermined price, called the strike price, for a set period. If the stock’s price rises above the strike price, the warrant holder can purchase shares at a below-market price. See original story here.
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