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Technology Stocks : IFLY - travel sales on the web pure play

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To: Rajiv who wrote (142)4/11/1998 5:58:00 PM
From: Ajay  Read Replies (2) of 4761
 
I have never seen so much discussion about warrants in my life! If you don't understand them don't trade them!! Sheesh! If you're familiar with options, then think of them as LEAPS that expire in 2003. In layman terms it's really just an option to buy the stock at a specific price. There are 2 differences and one is that the company can call them and then you have 2 choices: convert or sell. The other is that with a warrant, you must pay the $6.25 to the company. and they issue you your shares and keep the money; with an option that you exercise (assuming a call) you receive (buy) the shares from the person on the other side of the contract (NOT the company). Hope this is clear.

Warrants are basically a leverage play. You can leverage your money and gain greater returns (with more risk, of course).
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