A warrant gives its holder the right to buy a security at a set price for a specified time.
Warrants are frequently given as a “sweetener” along with new stock issues to persuade investors to buy them.
Stock warrants are very similar to stock options but they differ in a couple of ways. Stock warrants are issued by the company whose stock the warrant is exercisable into. In contrast, an exchange-traded stock option is trade between two investors and has no connection with the underlying company. Warrant issues are granted from the company itself. The longest term for an option is typically 2 to 3 years, while warrants can have an expiration of up to 15 years.
Warrants are also traded on stock exchanges such as the Toronto Stock Exchange or the New York Stock Exchange.
Unlike common shares, warrants have built-in drawbacks that add considerable risk. These include:
No ownership rights. While stock ownership provides the holder with a share of the company, voting rights and rights to dividends (if any), warrant owners participate only in the potential benefit of the stock’s price movement.
Risk of total loss. Stocks can, and do, become worthless. But a warrant holder runs a much greater risk of losing the entire amount paid for the option in a relatively short period. This risk reflects the nature of an option as a wasting asset which becomes worthless if it expires without being exercised.
Limited room for error. Because a warrant has a fixed life, it loses some of that time value every day (that’s why it is considered a "wasting asset.").
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
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Changes to this Policy
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