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GGF Epedia

Warrant: If you get issued a warrant, it's not for your arrest; it's actually a good thing. Like an 'option', being issued a warrant gives you the opportunity to buy shares in a company at a fixed price for a specified period of time. Important to note: the fixed price will usually be higher than the market price at the time of which the warrant is issued...expecting an increase in price over time. The investor thus makes money if the share price rises above the warrant's exercise price in the future: she can then buy it for warrant price and resell it for profit. If, on the other hand, the market price falls below the warrant exercise price, it is likely the warrant will not be exercised and will expire worthless once its deadline is reached.

 
 
 
 
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26

January

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