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.

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BLACKROCK Municipal Income TRUST

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Comment by TheInsidePoopon Mar 20, 2019 12:07pm

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Post# 29511410

RE:RE:RE:RE:NOW YOU GET A WARRANT FOR NO PRIME?

Math works out but here's another numbers issue to consider:
You go buy now 10,000 Hexo warrants and your trade will be 5% of the entire volume.
You go buy now 10,000 Hexo shares and your trade will be .33% of the entire volume.
Small liquidity / price impact problem both when buying and selling the clever warrants.

Jack4000 wrote:

electriqueman wrote:

Because it allows you to have more action for the same amount of money invested.

Great explanation Electiqman. Allow me to add an entirely different aspect that nobody has mentioned - risk reduction.

Say you have 10,000 shares of HEXO or, $90,000 in play. You feel that you want to reduce your risk so, sell it all (or part) and then buy 10,000 WTs for $34,000 to maintain a postion to ensure you don't miss out on any upward movement.

You have kept your investment for the next 11 months in play and eliminated $56,000 from going down the drain if the unthinkable occurs.

Or, you keep your investment for 11 more months, invest the $56 k elsewhere, put an addition on the house, go on a world tour or whatever but, you still keep your position at the same time you took money off the table that was at risk.

TEMPORARILY.