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To: HeyRainier who wrote (1247)	6/28/1998 10:19:00 PM
From: Scott H. Davis	Read Replies (2) \| Respond to of 1720

[warrents question] Confusing since there is the official & unofficial implication of whether management will extend the expiration date of not if the end draws near and it makes no sense to convert based on the gap between the conversion and market price. With TRIBY, management extended them a massive 40 days & all it did was extend an arbitrage situation. Scott

To: HeyRainier who wrote (1247)	6/29/1998 5:20:00 PM
From: Smooth Drive	Read Replies (1) \| Respond to of 1720

Hi Rainier, A quick overview of warrants, as follows: 1. They are a long-term option to buy a stock at a certain fixed cost. 2. Usually attached to the sale of a new issue stock or bond. (A sweetener if you will.) 3. A typical attachment might have a new issue going at 50 and the warrant at 65, with the warrant expiring in, say 5 years. Warrants almost always issued at substantial premium to stocks current price. 4. Warrants usually have a wait period (perhaps one year) before they can be exercised. 5. Most warrants have a certain life, but some are issued perpetual. 6. They trade separate from the stock on the same exchange as the stock. 7. Like a call option out the money, you wouldn't exercise an expiring 65 warrant if the stock was selling for 60. Take care, Eric