Theses, Dissertations, and Capstone Projects

Year of Award

1994

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business Administration

Department

Business Administration

Keywords

Securities, purchase, mispricing

Abstract

In the past, issuing warrants was thought of as the financial enigma of an issuing firm. Investors weren't interested in warrants; however, since the advent of options in the investment market, positive perceptions of trading in warrants periodically incrementally accrued until warrants gained the enthusiasm of the public domain. Moreover, it is likely that warrants will be used increasingly in the future by the issuing company as a sweetener or kicker for selling parent securities, which warrants often accompany. As long as warrants are used and are still associated with any speculative opening, warrants will be appreciated. So because warrants are unavoidable, they will never leave the public interest. Sometimes, warrants become more valuable in the short period, yet occasionally have no increase in value. The fluctuation of a warrant's price might be abstruse; however, it is traceable by the investigation of the underlying stock price. Most characteristics of warrants are similar to those of a call option. Warrants may be perceived as a decent call option. Therefore, by replicating analysis approach from option theory and adding some specific considerations of warrant analysis, warrants are effortlessly comprehensible. Via these concepts, the author of this thesis hopes to simplify information about warrants, reducing it into discrete categories and providing some degree of understanding of stock warrants, as well.

Document Type

Restricted Thesis

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