Question
Hi and thanks for your advise on a previous matter.
I have a friend who has discovered a share cert dated 1988 in eurotunnel plc or rather its one hundred warrants my friend would like to know if they have any value and how to encash them if so?
Once again thanks for your help in the past.Answer
Hello again. If the certificate is for warrants only then I'm afraid it's almost certainly worthless as I think it will have expired by now.
Warrants give shareholders the right to buy shares in a company at a fixed price up to a fixed expiry date. Up until that date the warrant will have a value if the price it allows holders to buy shares at is lower than the prevailing company share price.
For example, a warrant allowing holders to buy shares in Company X for 20p would be worth around 10p if the shares were trading at 30p, because holders can effectively buy the shares at a 10p discount. But if the shares were trading at 16p the warrant would be worthless as nobody would bother paying for it when they buy the shares more cheaply on the market.
Once a warrant passes its expiry date then it's worthless as it can no longer be used. I'm afraid this is very probably the case with your friend's eurotunnel warrants as I doubt warrants issued in 1988 would have an expiry date stretching this far forward (especially as the company's share issue was re-structured in 2007). Nevertheless, it'd be worth checking the certificate for this date before putting it in the shredder.
If you do have unexpired warrants they can usually be sold via stockbrokers, or you could exercise the warrant to buy shares at a discount then make a profit by selling them at market price.
Hi and thanks for your advise on a previous matter.
I have a friend who has discovered a share cert dated 1988 in eurotunnel plc or rather its one hundred warrants my friend would like to know if they have any value and how to encash them if so?
Once again thanks for your help in the past.Answer
Hello again. If the certificate is for warrants only then I'm afraid it's almost certainly worthless as I think it will have expired by now.
Warrants give shareholders the right to buy shares in a company at a fixed price up to a fixed expiry date. Up until that date the warrant will have a value if the price it allows holders to buy shares at is lower than the prevailing company share price.
For example, a warrant allowing holders to buy shares in Company X for 20p would be worth around 10p if the shares were trading at 30p, because holders can effectively buy the shares at a 10p discount. But if the shares were trading at 16p the warrant would be worthless as nobody would bother paying for it when they buy the shares more cheaply on the market.
Once a warrant passes its expiry date then it's worthless as it can no longer be used. I'm afraid this is very probably the case with your friend's eurotunnel warrants as I doubt warrants issued in 1988 would have an expiry date stretching this far forward (especially as the company's share issue was re-structured in 2007). Nevertheless, it'd be worth checking the certificate for this date before putting it in the shredder.
If you do have unexpired warrants they can usually be sold via stockbrokers, or you could exercise the warrant to buy shares at a discount then make a profit by selling them at market price.
Read this Q and A at http://www.candidmoney.com/questions/question475.aspx
No comments:
Post a Comment