SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Precious and Base Metal Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LLCF who wrote (8150)2/26/2003 9:41:40 PM
From: tyc:>  Read Replies (1) of 39344
 
In this case there is only one warrant. Its exercise price is $19 US. And there is only one company. Let's assume that its assets are international, and the stock trades in both New York and Toronto.

Let's assume that the only change is a fall in value of the US dollar.

The Market Capitalisation in Toronto should remain unchanged. The price of common stock in Toronto should remain unchaged.

The market capitalisation in American Dollars should climb. In other words the stock price will go up in New York.

Because US$19 is now worth fewer Canadian dollars, the exercise price in Canadian dollars will fall. This will cause the value of the warrants to increase in Canadian Dollars, even though the market capitalisation in Canada has remained unchanged (i.e.even though the stock price has not changed).

A slight complication is that the price of the warrant even in Toronto is expressed in US$. My conclusion is that the warrant price expressed in American dollars should climb, to agree with the now higher Canadian warrant value and the higher value of the Canadian dollar.

It seems to me that this should happen regardless of which is the major exchange. But of course I am just theorising... I have noticed that the market seldom takes any notice of my theories (Caveat Emptor!).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News