Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA

Primary Symbol: PTA

The Funds primary investment objective is high current income. The Funds secondary investment objective is capital appreciation The Fund seeks to achieve its investment objectives by investing at least 80% of its managed assets (i.e., net assets plus assets obtained through leverage) in a portfolio of preferred and other income securities issued by U.S. and non-U.S. companies, which may be either exchange-traded or available over-the-counter. In pursuing its investment objectives, the Fund seeks to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income generated by the Fund. There can be no assurance that the Fund will achieve its investment objectives.

NYSE:PTA - Post by User

Cohen & Steers Tax-Adv Pref Secs and Inc Fund

Bullboard Posts

Comment by AlbertaBankeron Jan 15, 2011 1:45pm

498 Views

Post# 17977873

RE: Warrant clarification

Hey Tom,

If you purchase the PTA.WT warrant and the PTA shares hit
.75 you are breakeven.

Just remember you paid for the warrants, so assuming your cost was
.20, you paid
.20 to buy the stock at
.75. The warrants are similiar to stock options, in the sense that it allows you to buy the option to buy a stock when it hits a future price of X. In this case, the strike price for the PTA.WT is
.75. To be truly in the money you would wait until the PTA SP is greater than
.75. For every increase in share price your warrant would hold more value, because you are buying the stock cheaper at
.75 than the current market price say $1.10. If your cost was
.20, then your all in cost would be
.95.

If you wanted to convert from warrants to stock you will have to pay 0.75 to do so, and I believe the exchange is 1 for 1.

You should read Greedy's post because he does a great job of explaining the Warrants advantages of Leveraged Growth. Remember that the value of the Warrants will also go up over time as the SP appreciates.

It is very easy to buy and sell the warrants. I buy them through RBC Direct Investing. I am sure you could you buy them online through your broker.

The other advantage of the warrants is that they are fairly liquid at this time. Lots of people are looking to buy and sell.

For me, I am holding the PTA.WT and PTA.WT.A warrants. I am not sure if I would convert to stocks or just sell the warrants later on.

Hope this helps,

AlbertaBanker

Bullboard Posts

This battery metals stock is on a path to the global stage