Can any one please tell me what will I get in 2016 and 2019 from these warrants if I hold on to them. They were distributed as value of $20.50 and 15.50 respectively, they have gone down since. as has GM. Thank you. Retired
Warrants are derivatives that give the holder the right (but not obligation) to buy stock (1 share/warrant) any time up to expiration.
They're both trading "in the money," with market prices equal to the sum of the spread between the stock price and strike price, plus a time premium (which vary depending on market expectations/sentiment, and time left to expiration). ie, warrant prices are tied to the stock price.
The warrants traded higher initially because IPO was at $33.
It's a reasonable expectation that GM will be trading much higher in 2016/2019, meaning that these warrants will be trading sharply higher as we go forward in time.
Thank you Supor450,
too complicated for me, I was given these and new GM for my GMS, if you could so kind as to tell me what these A & B warrants will give me at the due dates, how many warrants for the GM common? or maybe they just good to sell on the open market until they expire? Forgive my ignorance.