OTCPK:NWKRF - Post by User
Comment by
Ginger83on Mar 21, 2018 9:30am
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Post# 27752186
RE:RE:RE:HIP warrants Explanation Request
RE:RE:RE:HIP warrants Explanation Request Hi Monarka,
the idea behind the warrants are that if you paid .17, it would only be profitable to excercise at 1,92 which would make you break even. What’s interesting about warrants is it’s potential to use the leverage effect. This means that you are buyin the privilege to buy shares eventually but with minimal capital up front. At .17, you buy 10k shares for 1,700$ but if you excercise at 2,50$, this is a profit of 0,58$ for you per share times 10k: 5800$ on a 1700$ investment.
hope it helps, it is a harder financial product to understand but it can have great potential if used correctly!
PS: there are other notions as well that factor in the price of the warrants (time value, optimism, direction of the stock etc...)