(a) Exercise Price
The exercise price (which is the price at which holders of warrants can purchase common shares) remain constant over the life of the warrant.
(b) Exercise Ratio
The exercise ratio (which states the number of common shares that can be purchased at the exercise price per warrant) is usually 1:1.
(c) Expiry date
Warrants have an expiry date after which they cannot be exercised.
(d) Nature
A warrant can either be detachable or non-detachable. Detachable warrants can be sold
separately from the debenture (or preference share) to which it was originally attached. A nondetachable
warrant cannot be sold separately from the debenture to which it was originally
attached.
(e) Theoretical Value
The theoretical value of warrants depend on the market price of the ordinary shares.
Kavungya answered the question on April 14, 2021 at 20:14
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