Petaquilla Minerals Ltd PTQMF

RE: RE: Question (warrants)

[oullins]

A warrant is nothing else than an option to buy a share issued by the company at a set price.  A stock option is an option to buy a share from another stockholders.  Both have time limits.

Since it is an option it does not carry any of the rights of a share of stock.  No voting rights, no dividend rights, no ownership rights.

 

Here is a definition of warrants from Investopedia:

 

A stock warrant is just like a stock option because it gives you the right to purchase a company's stock at a specific price and at a specific date. However, a stock warrant differs from an option in two key ways:

 

1. A stock warrant is issued by the company itself
2. New shares are issued by the company for the transaction. Unlike a stock option, a stock warrant is issued directly by the company. When a stock option is exercised, the shares usually are received or given by one investor to another; when a stock warrant is exercised, the shares that fulfill the obligation are not received from another investor, but directly from the company.