Stock Warrants Explained- How to Buy Warrants

In this video I am going to explain what a stock warrant is, why warrants for stock are created, and how you can buy a warrant. We are going to use my current holdings as an example, and I am going to walk you through the break even point of my current holdings and what a couple of difference scenarios could look like for when my warrants expire.

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DISCLAIMER: I am not a financial advisor nor a CPA. These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am only sharing my opinion with no guarantee of gains or losses on investments.

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[JJ-gkri]

Finally, a warrant explanation video that makes sense. It's amazing to me how many "experts" on YouTube can ramble for 20-30 mins about warrants, and I'm still left confused. Unreal.

[JJ-gkri]

You totally nailed the explanation with your scenario examples. Crystal clear now. Seems no one else uses examples in their explanations.

[tonyvain]

Thank you for taking the time to make this video most appreciated

[jeremyd]

Zac, thank you so much for your videos. I have been watching them all and have learned so much.

[wallyg]

Thank you for this video understanding warrants.. I'm still holding drone deliver canada..down 10% lol..

[tcantin]

What's the implication when a company says they are extending the warrants: Is it good news or bad news?

[michaelmarkley]

Where did you learn that the strike price was .95? I'm looking at the MNTSW warrant and I don't know strike price or what ratio stock:warrant equals.

[bobg.]

Well done, a clear explanation of stock warrants.

[lindseyreese]

Obviously you should exercise the options at 0.97 if you can sell at $1 to limit your loss. When you should not exercise the options is if you can't get 0.98. Check the spread first if you don't want to get stuck holding it at a loss.

[jennifermasucci]

Zac, in your scenario #1 where the stock price is only $1 when you can exercise your warrant, wouldn't it make sense to go ahead & buy it anyway rather than lose the entire money you paid for the warrant? If you did so, at least at the end of the day, you'd have stock in the company which could ultimately rise & you could then sell. Am I missing something?

[sonunaik]

Can we short stock warrants? If yes, then how does their mechanism work?
Please Reply 🙏🙏🙏

[jaolagues]

When warrants are exercised, does the exercising person who holds the warrants, generally sell the stock on the day of exercise? Of course, if there is a substantial dividend coming two days after exercise, the sale should be delayed until the day after the dividend is paid. Do you agree with me? I am a former Options market maker on the CBOE for 5 years

[shawnsponds]

You can also trade warrants just like stock

[tannguyen]

May I know where I can find expiration date in US

[jennifermasucci]

And, I wonder if you can make a video about this very hot DWAC, DWACU and DWACW (which is what we bought on Friday at 9:30 for $49/share. We bought a lot of it, and don't really know what it is! Kind of a FOMO, knee-jerk - we thought we were buying regular stock. Now I find myself trying to wrap my head around what a warrant is. BTW, we are in the States, so we don't have to sell on the expiration date only.

[Sthiaac]

How do you find the intrinsic value of warrants when a stock goes through a RS then gets bought out by a private company? I'm talking about EMBKW for example....

[WMercedesS]

Can you make a video on Titan Medical Inc. TSX: TMD Nasdaq: TMDI

Thanks, Mr. Hartley

[HH-pvex]

How do you find out about expiration dates ? What happens when the expiration date arrives?

[owenzero]

Hey Zac, I've been day trading stock warrants while monitoring the common stock price. Sometimes 50 round trips a day on warrant names like dwacw. Do you see any red flags with this strategy? I've been very profitable, but paranoid I'm doing something wrong. TD Ameritrade said there are no fees. Am I missing something?

[kpadalldotablet]

In the USA, warrants are taxed as income, not capital gains, no matter how long you own them, so your ROI will be much less than the sale of the warrant. So be careful.