Warrants
Fundamental analysisA right issued by a company to buy its own shares later at a fixed price, frequently allotted to promoters.
In plain terms
Watch the strike price and who holds them. Promoter warrants priced well below where the share eventually trades are a transfer from minority shareholders, disclosed in the notes rather than announced.
Read the full lesson →Myopic loss aversion
Risk & psychologyThe tendency to hold less of a volatile asset than a long horizon warrants, because the asset is being evaluated over intervals far shorter than that horizon.
In plain terms
Not weakness. Expected return accumulates with time while the scatter grows only with its square root, so at a daily interval nearly half of all observations are losses — and acting on a series like that is a reasonable response to the series.
Read the full lesson →Preferential allotment
Fundamental analysisAn issue of shares or warrants to named persons — frequently promoters or a strategic investor — approved by shareholders and priced at or above a regulatory floor.
In plain terms
New shares are created and sold to somebody in particular, so the count rises while your holding does not. Nothing about it is adjusted on the chart.
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