(Total Views: 534)
Posted On: 04/05/2019 7:36:31 PM
Post# of 32973
Interesting
Now I am not even sure my broker allows the trading of US warrants... but the info is relevant for any shareholder.
Unless we get very close to the end of validity, or perhaps if the pps starts falling after it rode above the strike price (which would lead to a decrease of the value of the warrant), I think it is generally more profitable (and perhaps easier too) to simply trade the warrant instead of exercising it
I suppose there must be other situations where it makes sense. For instance if you can keep the share after exercising a warrant, it might help you get enough voting rights to get someone on the BOD (for large shareholders, obviously !)
Now I am not even sure my broker allows the trading of US warrants... but the info is relevant for any shareholder.
Unless we get very close to the end of validity, or perhaps if the pps starts falling after it rode above the strike price (which would lead to a decrease of the value of the warrant), I think it is generally more profitable (and perhaps easier too) to simply trade the warrant instead of exercising it
I suppose there must be other situations where it makes sense. For instance if you can keep the share after exercising a warrant, it might help you get enough voting rights to get someone on the BOD (for large shareholders, obviously !)
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