February 8, 2010

Are Warrants Safe Investments?

Are Warrants Safe Investments?

Most investors should shy away from low-priced warrants. It is another complex specialized field that sounds fine in concept but which few investors understand. Warrants give a person the right to buy so many shares of a company's common stock at a specific price, up to a certain date.


Many warrants are cheap in price and, therefore, seem appealing. The real question comes down to whether the common stock is correct to buy. Most investors will be better off to forget the field of warrants.


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