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General Motors Company Message Board

  • a57pooter a57pooter Apr 12, 2013 9:03 AM Flag

    GM-A and GM-B

    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

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    • 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.

      GL.

    • Most likely nothing. gm blight will be gone by then.

 
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