Search or Ask your question here.
WHAT IS THE DIFFERENCE BETWEEN RIGHTS AND WARRANTS?
Asked by: hiranpavi Jun 05, 2009 - 63 Months Ago.
Viewed 1796 times
Question must adhere to our
From the investor's perspective, you can get similar results from rights, warrants, and call options. Which is, simply, leveraged profits if the stock price rises.
The differences are mainly from the issuer perspective:
* Rights are issued directly by the company to raise money. The expiry is typically weeks to months.
* Warrants are usually issued with other instruments by companies. For example, a debenture with attached warrants. The expiry may be up to several years.
* Options are issued by option writers, who are other traders. Options trade on, and are guaranteed by option exchanges. All options expire on the 3rd Friday of the month. Options price increments are defined by the option exchange.
* Put Options are made for price drops not gains. So only Call Options are similar to Rights and Warrants.
Answered by: sherwin - 63 Months Ago.
Please sign in.
Comments must adhere to our
WHAT IS THE DIFFERENCE BETWEEN RIGHTS AND WARRANTS? - HelpGlobe.Business.Finance
Answers must adhere to our
Other Questions from 'hiranpavi' ...
What is the definition for the Prime Rate?
Who is Yuval Tal?
Will the value of the US dollar fall again?
Do U know any current economic issues going on now? Like, you got any links to a site about anything that deals w/ something that is CURRENTLY going on about economics?
What causes interest rates to rise or fall?