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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

Comment by DTM5on Nov 22, 2012 9:24am
230 Views
Post# 20631104

RE: Warrants : PTA.WT and PTA.WT.B

RE: Warrants : PTA.WT and PTA.WT.B

When the warrants are not in the money, they are only a speculation on the future value of the stock;

When they are in the money they have an intrinsic value  - If PTA was 50 cents and the B warrant allowed you to buy the stock at 35 the intrinsic value would be your spread, 15 cents.

Hence the warrant would probably trade around a range of its intrinsic value.  Of course for the same $ invested a warrant will give you leverage / higher rate of return than a stock (and corresponding risk)

For example, a 5 cent gain on a 15 cent warrant to 20 cents would be a ROR of 33% vs. a 5 cent gain on a 50 cent stock which would be 10%.

Hence - Bigger gain potential on Warrants (for the same $ invested) but also bigger risk and in the case of PTA less liquidity.

Best thing to do with them is buy them when they are really cheap and have a longer term to expiry.   Just like anything. 

 

 

 

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