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BLACKROCK Municipal Income TRUST V.BFK.P


Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.


NYSE:BFK - Post by User

Post by quinlashon Feb 01, 2021 10:03am
94 Views
Post# 32435456

HEXO HIP-WT-A

HEXO HIP-WT-ASeen a bunch of postings on the warrants.  Trying my best not to have to explain warrants in great detail as on the forum as i have tried that before and it took all day.

Anyhow, if you find it confusing as to why anyone would buy a warrant it is likely due to you trying to figure out the math based on a 1 warrant to 1 share ratio and not lookig at what is called "leverage".  Leverage is the buying power your money has when it is compared to how many shares you can buy vs. how many warrants you can buy for the same amount of money.

It is best to run the math on a spreadsheet so that you can easily plug in different dollar amounts but take the time to run the numbers using $100 in warrants vs. $100 in shares.  Do not stop working out the numbers until you get to a point where you calcuate the number of shares you would end up with by exercising the warrants and selling the shares compared to selling just the shares you bought with the $100.  

Warrants are handy if you only want to put in a small amount of money on a company for a long hold but they also work well if you want to hold a mix of warrants and shares as they can provide a nice bonus on the returns if the shareprice exceeds the strikeprice by the amount you paid for the warrants.

Hope that helps some

Q





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