It seems to me the date makes a world of difference. If I go out tomorrow and buy another 100,000 shares do I qualify for warrants or was the cut-off on the day the announcement came out. And, is it one warrant per share, per 1000 shares etc.?
That might make a big difference in my decision to add at this time.
Make any sense?
Yes, makes sense, but think about the implication of what you're saying.
If there was something called a "cut-off," using your words, then suppose you buy your 100K shares on Thursday from someone who bought them before the "cut-off." Suppose it's 1 warrant for 1 share per 1 share owned.
That would mean that, as of Wednesday, the guy owns the 100K shares and the 100K warrants.
Does the guy who sold the shares to you get to keep the other 100K warrants? No; that's crazy.
Does the company get the warrants back? No; they issue the warrants and that's that.
If there were a "cut-off," that would mean that warrants would have to vanish, which they don't do.
The only possible conclusion is that the warrants "travel" with the shares. I.e., when you buy a share from someone, you're buying the share and all the rights pertaining to that share.
Again, it's the exact same as a dividend (cash or stock) or warrant following a stock split. People get confused all the time about record dates vs. distribution dates, and it's needless worry because the record date doesn't mean jack. |
