Post by
Claired on Nov 03, 2013 12:52pm
Need Derivatives
Why do they let the insiders buy options but we can't? Bunch of bull. Hedging options would make this much more attractive to institutional investors who otherwise can't justify investments in Nigeria. We would see larger buy-ins if the risk could be mitigated.
Comment by
zeus55 on Nov 03, 2013 5:16pm
Insiders do not "buy" options, they get them for free. You are thinking of publicly-traded options, those are a different animal and stocks like Mart never have such options attached. Heck, even a lot of big Canadian stocks do not trade options. It would be nice, but will never happen here.
Comment by
Claired on Nov 03, 2013 7:36pm
Who is going to give the insiders the rights for potentially huge share price profits for free? They must have bought them from some larger institutional dealer. Probably to minimize the initial cost on capitalizing off of their own expected gains.
Comment by
gibbonsj on Nov 03, 2013 8:07pm
It's done all the time, employee performamce incentives, signing perks and so on. Warrants are the killer though because more often than not they're issued to outsiders with little to no interest in holding long term.
Comment by
Claired on Nov 04, 2013 11:53am
Very constructive. Unlike zeus who pretends that he has something to be arrogant about and has been added to my ignore list.