Warrants
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Convertibles
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Warrant is a long term option to buy a specified numbers of common stock at stated price during specified period of time.
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Convertibles are securities which are converted into a specified numbers of common stock at predefined time period.
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The company receives extra money while exercising warrants.
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No extra money is received by the company while exercising convertibles securities.
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Warrants are attached with bond or preferred stock. It is not a security.
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Convertibles may be the bond or preferred stock.
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After exercising the warrant the securities are shown in the company’s book of account
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After exercising the convertible securities, they are replaced with the preferred stock or common stock on company’s book of account.
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Warrants can be sold separately by detaching from the securities.
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This feature in not in convertibles.
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Sunday, 19 July 2015
Differences between warrants and Convertibles
Security Analysis and Investment Management
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