777: I haven't traded warrants since the 60's when I first began investing. I remember trading Atlas Corporation perpetual warrants. (AZ - no longer around). Warrants are like calls, they can provide nice leverage. Some warrants, unlike calls, are perpetual. Back in my youth many warrants were issued as sweeteners with corporate bond offerings. Generally they were attached to the bonds and could only be execised by the bondholder/purchaser. However, some could be separated from the bonds and sold. Most had some rather distant (at issue) expiration date. Some were perpetual. Many were the right to buy more than a single share of stock. Thus, a warrant could easily sell for more than the price of the stock since it could, as an example, allow you to buy 3 shares of XYZ at $5 per share. If, during the life of the warrant, the stock were to move to $15 a share, you could exercise the warrant, buy 3 shares from the XYZ company @$5/share ($15), and immediately resell the stock for $45. The warrant would be priced as an in-the-money call. So it would sell for at least $30, twice the price of the stock. Unlike a call, you can see that the warrant in this particular example will go up $3 for every $1 advance in the underlying. This will add to its value. So I see no problem with a stock warrant selling for a multiple of the price of the underlying stock. The warrant terms are important. I hope this answers your question. Jack
Thanks, but I wasn't asking a question. I am aware of the terms and expiration of this warrant and none of the above exceptions apply. This appears to be something else. Just some market idiocy. Near impossible to capture the juice (no borrow), so it's just a talking point.
Yeah, technically its a question, but unless the terms were for multiple shares there's no way a warrant can cost more than the stock, even if the exercise was zero. But , it's still like that. Has no one the skills to discover what the symbol is?