December 20, 2012
I came across the following article on warrants on Bank of America stock. Warrants are like options on a stock.
In January 2009, Bank of America issued Class A warrants to the Federal Government as part of its TARP bailout where it received loans from the US Treasury Department (Treasury). As the bank started paying back its loans, the Treasury either sold these options back to the bank or auctioned them off to public buyers. As a result, these warrants are now available for public investors.
These warrants can be converted into shares when Bank of America’s stock price hits $13.30 or more, any time before January 16, 2019, after which date these warrants expire worthless.
I purchased some Bank Of America warrants at $5.39. Will add to position if price of warrants drops.
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