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Hi Jeff,
You wrote:
>Can anyone explain what a warrant is ? Where do they trade?
"Warrants are transferable option certificates issued by companies and
trusts which entitle the holder to buy a specific number of shares in
that company at a specific price (exercise price) at a specific time in
the future. To many investors they are basically long-term options. Like
options, they present opportunities for capital gain which can make them
an attractive medium for speculative investing. The difference from
options is that, when exercised, the shares come from the company and not
from another investor."
Above is the first paragraph from a book titled "The Investor's Guide to
Warrants" by Andrew McHattie (published in the UK by Financial Times -
Pitman Publishing) which is about trading warrants quoted on the London
Stock Exchange of which there are currently about 257. They can be bought
and sold through a broker just like stocks.
Hope this helps.
Michael Soliatis
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