Ex-Warrants

Ex-warrants - Ex-warrants also known as subscription warrants are stocks, which no longer have the warrants attached to them. Ex-warrants may have been declared but not delivered. The stock seller would still retain the warrants rather than the buyer retaining them. A warrant is a certificate, which gives shareholders the right to purchase future shares within the company either for a specific period of time, within a certain amount of years or they may have the right to purchase these new stock shares at any time. Usually there is a price stipulation where the price of the shares would be greater than the market price at the time of issuance. These warrants are a form of derivatives and usually come with a preferred stock or bond. However the stock, which can be purchased at a later date would be common stock. The benefit to the investor would be that if the stock prices increase beyond the warrant price, the investor can sell them and make a profit. Warrants are traded separately as an option on the option exchanges.