manfromjax said if you had the warrants in a margi
Post# of 32635
YogInvest said certain types are warrants can be cashless
Both are right. Those that have warrants or thinking about buying them might want to factor this in as well as check with the company that they are not cashless. The good news is, if you have a problem exercise them 5 years from now because of lack of cash, it's a good problem to have.
"Some examples of cashless conversions are from preferred shares or convertible bonds to common stock. Employee stock options, rights and warrants can also be cashless if their exercise prices are zero. "
"For example, warrants give the right, but not the obligation, to buy or sell a security—most commonly an equity—at a certain price before expiration. The price at which the underlying security is be bought or sold is referred to as the exercise price or strike price. However, in order to be cashless, the warrant itself must be defined as a cashless warrant. In this case, the holder would pay the exercise price from the value of the shares received."
https://www.investopedia.com/terms/c/cashless_conversion.asp