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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › alaska salvage dec 09 ''warrants''
hi sir,
can u please explain for me what warrants mean, i have a clue that its like a covertible loan which can be converted to shares but i dont know what it really means.
please help
A warrant is a bit like a ‘gift voucher’. It entitles you to buy shares at a fixed price on a future date. If the share price is higher than the fixed price on that date then you will buy them (and make a profit). If the price is lower you will throw the warrant away 🙂
The difference from convertibles is that you still have your bonds (with convertibles, you get the shares as repayment of the bonds).
u are the best
That is very kind of you 🙂