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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?


To: FES777 who wrote (3573)4/22/1998 1:50:00 PM
From: Amigo Mike  Read Replies (1) | Respond to of 29382
 
Warrants are simliar to LEAPS in that they give you the right to buy one share of common by a certain date for a fixed price.

Case in point AESPW .... gives me the right to buy one share of AESP common for $6.90 at anytime before 2/13/2002. So I buy the warrants for $1. I can either hold the warrant for a profit and sell on the open market...... or wait and when the stock is $10 ..... I can trade the warrant and $6.90 for 1 share of stock.

Amigo Mike