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Speedster, A warrant is basically a long-term option. For example, with thermacell warrants, you can buy 1 share of common stock for $4.25 ant time before 3/11/01. These warrants are out-of-the money, since share price is below strike price (4.25) of the warrant. If you think the stock will exceed the strike price before the expiration date, they can give you more leverage that buying the common stock. BUT, you have no ownership in company, no vote at shareholder meetings, no dividends (if they ever paid one), AND, like other options, they can expire worthless. Also, warrants can be called in early, under certain circumstances. So, bottom line, more risky than common stock, but if the stock does really well, the warrants will rise a much larger percentage than underlying common stock. Good luck! John R. |
