Term of the Day: Exploding Warrant

	View online | Add Investopedia to safe senders list September 7, 2013 Dictionary Investing Markets Personal Finance Active Trading Forex Professionals Tutorials Exploding Warrant An equity derivative investment instrument that gives that holder the right, but not the obligation, to acquire the underlying instrument, and which is exercised only if the issuing company does not meet certain specified goals. An exploding warrant becomes exercisable only in the event that the issuing company fails to meet certain goals, such as sales targets, product goals or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) values. If the specified goals are met, however, the warrant "explodes" and is not exercisable. Also known as a "springing warrant." Investopedia Says: A warrant is often presented as part of a new-issue offering to attract investors. It is similar to a call option, but... Learn More Share: A User's Guide To Warrants Although warrants are not very common anymore, they are not all that hard to value in practice. After all, a warrant is basically just... Share: Warrants: A High-Return Investment Tool A warrant can increase a shareholder's confidence in a stock, provided the underlying value of the security actually increases... Share: Warrants And Call Options While warrants and calls offer significant benefits to investors, as derivative instruments they are not without their risks... Share: 5 Equity Derivatives And How They Work There are many equity derivatives traded throughout the world. Here we look at five equity derivatives and explain how they work... Share: Digging For Profitable Delistings Discover the vast opportunities available in the opposite type of transaction - delistings. Read on to learn how delistings work... Share: Quit Your Job To Trade Stocks? Trading is often viewed as a high barrier-to-entry field, but this is simply not the case in today's market... Share: **NEW** Subscription Services: Income Investing subscribe now! ETF Investing subscribe now! Commodities Trading subscribe now! Options Trading subscribe now! Futures Trading subscribe now! Subscription Services: Investing Basics subscribe now! Warren Buffett Watch subscribe now! Forex Weekly subscribe now! Professionals In The Money subscribe now! Chart Advisor subscribe now! Stock Watch Weekly subscribe now! Personal Finance subscribe now! News To Use subscribe now! Related Slideshows: 1. 10 Reasons To Add ETFs To Your Portfolio 2. 8 Ways To Survive A Market Downturn 3. Top 7 Technical Analysis Tools 4. 10 Options Strategies To Know 5. 10 Tips For Getting A Fair Price On A Home Related FAQs: 1. How do speculators profit from options? 2. How can I use market breadth to my advantage? 3. If you have a house that is under your company name and you want to sell it back to yourself, do you have to pay capital gains taxes? 4. What is the difference between weighted average shares outstanding and basic weighted average shares? 5. Why does my broker allow me to enter only day orders for short selling? Videos More Videos » Moving Average Behavioral Finance The Options Premium Trendlines The Stop Loss Order You are currently subscribed as: udin.n.teta.finance@blogger.com Unsubscribe | Manage Subscriptions | Subscribe Investopedia.com A Division of Valueclick, Inc. Copyright © 2013 All Rights Reserved Follow us on: