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Simple English definitions for legal terms
ex warrants
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A quick definition of ex warrants:
Term: EX WARRANTS
Definition: Ex warrants means without warrants. When shares are traded ex warrants, it means that they no longer come with the right to receive declared warrants that have been distributed to holders. This is abbreviated as X or XW.
Simply put, ex warrants means that you don't get any extra benefits that come with owning a share, like receiving warrants, when you buy or sell it.
A more thorough explanation:
EX WARRANTS
Ex warrants means without warrants. When shares are traded ex warrants, it means that they no longer carry the right to receive declared warrants that have been distributed to holders. This is abbreviated as X or XW.
Example 1: Company A declares a dividend of $1 per share and also distributes warrants to its shareholders. The shares are traded ex warrants after the ex-dividend date, which means that anyone who buys the shares after that date will not receive the warrants.
Example 2: Company B announces a rights issue of shares along with warrants. The shares are traded ex warrants after the ex-rights date, which means that anyone who buys the shares after that date will not be entitled to the warrants.
These examples illustrate how shares are traded ex warrants after a certain date, which means that the new buyers of those shares will not receive the warrants that were distributed to the previous shareholders.