Need to make clear assumption on warrants Quote

Need to make clear assumption on warrants

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Warrants were exercised? Would make sense to me. Shortsighted, given current events, but a profit is a profit. Does anyone know what the strike price of the warrants is

Read More: https://investorshangout.com/post/view?id=572...z6IY87fgQX
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Just because people exercise warrants does not mean they are selling those shares. If people exercised warrants in a taxable account, it would be quite possible that they would hold for a year in order to get favorable capital gains tax rates. The gains are significant since many remaining warrants should be in the 40-50 cent (many higher warrants should have been exercised in last year tender offer) range so tax considerations are real.

If the warrants are in an IRA, the warrants exercise and the sale can happen back to back since this is a tax deferred account. But in this case, warrants should not be exercised if you already have shares in your account because you would not want to spend money to have shares sit in your IRA behind other tradeable shares because most warrants should have many years left until they expire.

All IMO but I have thought a lot about this