I agree ! This forum is still dead 9 years on. That's because the good traders were hassled out of here and also got banned because they retaliated against mobsters!
They should have banned the mobsters instead! We did say this would happen because the moderators banned the wrong people! They should have banned the mobsters!!
Ok. I will answer your question on Covered Warrants. Covered warrants are long term Options that can be bought or sold. Normal Warrants can only be bought.
People use them mainly to hedge their stock holding .
Warrants can have a life time of many years. They are also used by companies like Banks to hold on to their best branch managers. They offer these warrants as gifts that can be cashed for example in 5 years time.
So, let's say stock ABC is currently valued at 400p. The company Abc will offer them as gift to their Staff / manager at 600p For free!
The staff will stay longer in their jobs and loose interest in leaving the company! The staff can sell those covered warrants when ABC has passed OVER the 600p strike price to the public or to ABC and keep the whole profit Without having to give ABC 400p!
The staff or manager can still sell them and stay in their job with ABC! It can also be seen as loyalty bonus.
I hope it makes sense?