In the Money vs. Out of the Money Stock Warrants The exercise price for the warrant in the example above is $2. If the company’s shares trade at $6, that puts the warrant “in the money” by $4.
Applied Optoelectronics issued a stock warrant to Amazon allowing the purchase of 7.95 million shares at the price of $23.69 per share. AAOI stock price rallied 82% on the news after the market ...
The press release indicates a significant dilution of existing shareholders' equity due to the issuance of over 17 million shares and related warrants, which may affect the stock price negatively.