Warrants for high-risk money-not for faint-hearted

Chicago Sun-Times | May 23, 1986| | Copyright

Warrants are a bit like the little girl with the little curl right in the middle of her forehead - when they are good they are very, very good, but when they are bad you can lose a lot of money.

Warrants are rights that are granted by a company to the holder of the warrant. In most cases, these rights entitle the warrant holder to buy one share of common stock at a predetermined price until a pre-specified date. For example: An XYZ Corp. Warrant (listed in the newspaper as XYZ Wt) represents the right to buy one share of XYZ common stock for $10 until Oct. 31, 1989. That means that any ...

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