Warrants

 So I loved this bit of knowledge that I learned. I probably won't be using it much but it is very nice to know and to research/check sometimes. "This" is warrants or more importantly outstanding warrants that have a execution price near where the price is. So say a stock out of the blue goes from .30 cents to $3.15! Whoa Nelly! This is going to THe MOON! no....no it's not. Turns out it starts selling off crazy and drifts all the way back down or thereabouts. Well turns out this stock had warrants that were executable at $3.15!  all that needs to happen for a warrant to be executable is for the price to be touched - then it is free game.  So I've been looking at some of the financial documents and looking for warrant information and I saw one that had a bit about splits and the warrant price changing based on the split. I'm not sure about this just yet, but I'll be asking someone with more experience than me in these matters and get to the bottom of this. But for now it does seem like if there is a reverses split - we'll use 1:2 for the ease of this - then the warrant executable price would also double - so if it was $3.15 before the split then it would be $6.30 after the split. One of the things that I wonder is if there has to be updated documents that state the new warrant execution price. Anyway... Cheers.