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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: allii who wrote (32680)	3/2/2000 11:16:00 PM
From: SSP	Read Replies (1) \| Respond to of 150070

What are stock warrants? Basics of call and put warrants Warrants provide a simple, low cost way to get exposure to shares listed on the JSE. The two basic types of warrants are ?call warrants? and "put warrants?. Call warrants allow investors to profit from share price rises. Put warrants allow investors to profit from share price falls. Call warrants A call warrant gives the holder the right, but not the obligation, to buy the underlying share for a fixed price known as the ?exercise price? at a future date. Taking up this right is known as ?exercising? the warrant. The price of call warrants will generally rise if the price of the underlying share rises, and fall if the share price falls, all other things being equal. Put warrants A put warrant gives the holder the right, but not the obligation, to sell the underlying share to the warrant Issuer for the exercise price at a future date (also referred to as ?exercising? the warrant). The price of put warrants will generally rise if the price of the underlying share falls, and fall if the share price rises, all other things being equal. Expiry date Both call and put warrants have an ?expiry date?. An ?American-style? warrant can be exercised at any time up to and including the expiry date. A ?European-style? warrant can be exercised only on the expiry date. The Terms of Issue of a particular warrant will specify the style of exercise. Benefits at a glance: Low cost trading on the JSE Warrants are traded on the JSE. This means that you can buy and sell warrants and trade profitably without actually exercising the Warrant. You can trade profitably by buying and selling warrants on the JSE, as you can with shares, but with significantly lower costs. Since Warrants are usually much cheaper than the underlying shares, both brokerage and interest costs are lower. Leveraged trading Warrants are a leveraged share investment. Since Warrants are considerably cheaper than the shares but can capture up to 100 percent of the price movement of the shares, the warrants are an effective way to leverage your investment. Using call warrants as an example, ?leverage? means that for a given increase in the share price, warrant holders will potentially make a greater profit as a percentage of capital invested. Conversely, for a given decrease in the share price, holders will be exposed to a greater potential loss for a decrease in the share price as a percentage of capital invested. However, you are never obliged to pay anything more than the initial price of the warrant, so the maximum amount you can lose is limited to the price paid.This can be seen in Diagram 1 below, which illustrates the relative values of the XYZ share and XYZ call warrant for a hypothetical XYZ share price path.

To: allii who wrote (32680)	3/2/2000 11:45:00 PM
From: SSP	Read Replies (1) \| Respond to of 150070

* Socket's warrants (Symbol: SCKTW) were initially issued on June 5, 1995 as part of the Company's Initial Public Offering and expire on June 5, 2000. Each warrant is a right to acquire 4.25 shares of freely tradable Socket common stock for an exercise price of $8.40. Warrant Exercise Instructions To exercise your warrants, you must send your warrant certificate(s) to our warrant agent, American Stock Transfer and Trust, 40 Wall Street, New York, NY 10005, along with a certified or bank check for $8.40 for each warrant being exercised made out to Socket Communications, Inc. Please also enclose any special instructions regarding distribution of your common shares. Your common shares will be sent to you directly from our warrant agent. Fractional shares will not be issued. Instead, you will receive a check in lieu of the fractional share valued at the closing common stock price the day prior to the date of exercise. Should you have any additional questions, you may call American Stock Transfer and Trust at 800-937-5449. Warrants may also be directly purchased and sold. From their web site: 209.24.94.47 You should try doing a little sleuthing yourself, learn how to use the net to optain info - that's what I do! SSP