The Last Bear Standing • 24 implied HN points • 06 Dec 24
- Warrants are special financial tools that work like options, but they're directly tied to the company itself. This means that when you exercise them, the company issues new shares and may get extra cash.
- SPACs, which are companies created to raise money and merge with other firms, have made warrants more common. They usually come with a strike price over $10 and can help attract investors.
- Warrants can be traded on stock exchanges, and their value is influenced by the price of the underlying shares and how much time is left before they expire. They also have unique rules that can affect their trading.