Investing Terms
   401k Plan
   403 Plan
   529 Plan
   12b 1
   ADR
   Agency Bonds
   Annuity
   Asset Management
   Bear Spread
   Bond Yield
   Bull Spread
   Call Option
   Closed End Fund
   CMO
   Commodities Broker
   Convertible Bonds
   Covered Call Option
   Current Yield
   Custodial Account
   Debit Spread
   Defined Benefit Plan
   Defined Contribution Plan
   Diagonal Spread
   Dividend
   Eurodollar
   Fixed Annuity
   Foreign Currency Option
   General Obligation Bond
   Growth Fund
   Hedge Fund
   Horizontal Spread
   Income Fund
   Independent Broker
   Index Fund
   Index Option
   IRA
   Interest Rate Option
   Life Annuity
   Limited Partnership
   Margin Account
   Married Put
   Money Market Fund
   Mortgage REIT
   Municipal Bond Investing
   Mutual Fund Investment
   No Load Fund
   Nominal Yield
   Online Stockbroker
   Online Commodity Broker
   Online Real Estate Broker
   Option Spread
   Option Straddle
   P E Ratio
   Penny Stock Investing
   Portfolio Management
   Preferred Stock Investing
   Private Placement
   Put Option
   Put Bonds
   REIT Investment
   Repo
   Revenue Bond
   Secured Bond
   Short Sell
   SEP IRA
   Stock Option
   Stock Warrant
   Subordinated Debenture
   Tax Deferred Annuity
   Treasury Bill
   Treasury Note
   Treasury Bond
   Treasury STRIP
   Trust Account
   UGMA Account
   Unit Investment Trust
   Variable Annuity
   Yield To Maturity
   Yield To Call
   Zero Coupon Bond



   Courses
   Insurance CE
   Marketing Training
   Advertising
   Contact Us
   Home

Warants

Contracts that can be bought or sold and give the investor the right to buy the underlying stock at a set price are warrants. These are long term and can be held, sold or exercised.

The advantage is if the market rises, the contract can be traded for a premium above what the investor paid. Unlike traditional equity options, warrants offer a longer term feature. The risk is that they are normally priced out of the money (more than most options).

If the stock investor wishes to exercise the warrant they can (own the stock).

Warrants do not pay dividends. Once they are exercised into stock shares, a dividend is eligible to be paid to the stockholder.

Suggested Reading

- This course is designed as a beginner's guide for the warrants topic. Through this course, you will come to understand the basic concepts used by investors worldwide regarding warrants and factors that influence the price of a warrant. Additional, this course will give you the opportunity to learn how to determine whether a warrant is worth buying. As an introductory course about the warrants, it is presented in a simple and easy to use format, using examples and illustrations suitable for those with little to no prior knowledge or experience with the subject matter.

Copyright American Investment Training, Inc. stocks and warrants trading and investing company