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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: John J H Kim who wrote (29742)	1/24/2000 9:34:00 PM
From: LastShadow	Respond to of 43080

Warrants & Conversions Warrants are a way to wager on future prices, but its a lot different than options. Warrants guarantee, for a small fee, the opportuinity to buy a stock for a fixed price during a specific period of time. For example, a $5 warrant might grant the right to buy ENON for $20 a share for 1 year. If the price goes above that price, say to $25, you excercise (or convert) the warrant and make $20 on each share. you can then sell the shares at a higher price - say today's $27.50, and make even more money. Companies sell warrants if they plan to raise money by issuing new stock or selling their own shares. Warrants are listed in the stock columns of the newspapers and and can be traded - the suffix is 'wt'. If the stock price drops, the warrant expires worthless. Trading warrants is, imho, a lot better then trading options, as thy have a lot longer lifespan (years in some cases) and are fairly cheap. lastshadow