Posted inEducation

How Warrants Work

A warrant gives its owner the right to order a company to issue a new share. In addition, it gives the owner the right to buy the newly issued share at a predetermined price. If the issuer has registered the underlying share with the SEC, the owner can immediately sell the newly issued share on […]

Posted inEducation

How Dilution Works

Dilution is commonly misunderstood by beginning and even intermediate investors. Yet it can have a major impact on the price of a small- or micro-cap stock. The phenomenon occurs when a company issues additional shares, which increases its total shares outstanding. For a large-cap company that has issued over a billion shares, issuing a million […]