๐๏ธ ๐ช๐ฎ๐ฟ๐ฟ๐ฎ๐ป๐๐, ๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ฏ๐น๐ฒ๐ & ๐๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ ๐ฆ๐๐ผ๐ฐ๐ธ ๐ข๐ฝ๐๐ถ๐ผ๐ป๐ โ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒโ๐ โ๐ฆ๐ฝ๐ฒ๐ฐ๐ถ๐ฎ๐น ๐ง๐ถ๐ฐ๐ธ๐ฒ๐๐โ
Finance is not always about numbers - it is also about creativity. Companies often hand out special tickets that give investors and employees a unique way to share in their success. Letโs break it down:
๐ซ ๐ช๐ฎ๐ฟ๐ฟ๐ฎ๐ป๐๐ โ ๐ง๐ต๐ฒ ๐๐ผ๐ป๐๐ ๐ง๐ถ๐ฐ๐ธ๐ฒ๐ Imagine you buy a concert ticket ๐ถ โฆ and it comes with a coupon to attend another show at a fixed price, even if tickets sell out later.
That is a warrant: a company-issued option that lets you buy stock at a set price. They are often attached to bonds to make them more appealing.
๐ ๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ฏ๐น๐ฒ ๐๐ผ๐ป๐ฑ๐ โ ๐ง๐ต๐ฒ ๐ง๐ฟ๐ฎ๐ป๐๐ณ๐ผ๐ฟ๐บ๐ถ๐ป๐ด ๐ง๐ถ๐ฐ๐ธ๐ฒ๐ Think of a movie pass ๐ฅ that can be swapped halfway through for VIP backstage access. A convertible bond starts as debt (steady interest payments) but can be exchanged for shares if the company does well. Safety + upside = why investors love them.
๐ผ ๐๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ ๐ฆ๐๐ผ๐ฐ๐ธ ๐ข๐ฝ๐๐ถ๐ผ๐ป๐ โ ๐ง๐ต๐ฒ ๐๐ผ๐น๐ฑ๐ฒ๐ป ๐๐ฎ๐ป๐ฑ๐ฐ๐๐ณ๐ณ๐ Startups, in particular, canโt always pay big salaries, so they offer employees โoptionsโ instead. Itโs like joining a gym ๐๏ธ with a rule: you can only use the premium facilities after sticking around for a few years. If the company grows, employees cash in big - but if not, the options may expire worthless.
๐ ๐๐ฅ๐ ๐ง๐ถ๐ฝ: All three instruments give people a reason to bet on the companyโs future success. Warrants and convertibles woo investors. Employee stock options keep talent motivated.
Risk Hub
๐๏ธ ๐ช๐ฎ๐ฟ๐ฟ๐ฎ๐ป๐๐, ๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ฏ๐น๐ฒ๐ & ๐๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ ๐ฆ๐๐ผ๐ฐ๐ธ ๐ข๐ฝ๐๐ถ๐ผ๐ป๐ โ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒโ๐ โ๐ฆ๐ฝ๐ฒ๐ฐ๐ถ๐ฎ๐น ๐ง๐ถ๐ฐ๐ธ๐ฒ๐๐โ
Finance is not always about numbers - it is also about creativity. Companies often hand out special tickets that give investors and employees a unique way to share in their success. Letโs break it down:
๐ซ ๐ช๐ฎ๐ฟ๐ฟ๐ฎ๐ป๐๐ โ ๐ง๐ต๐ฒ ๐๐ผ๐ป๐๐ ๐ง๐ถ๐ฐ๐ธ๐ฒ๐
Imagine you buy a concert ticket ๐ถ โฆ and it comes with a coupon to attend another show at a fixed price, even if tickets sell out later.
That is a warrant: a company-issued option that lets you buy stock at a set price. They are often attached to bonds to make them more appealing.
๐ ๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ฏ๐น๐ฒ ๐๐ผ๐ป๐ฑ๐ โ ๐ง๐ต๐ฒ ๐ง๐ฟ๐ฎ๐ป๐๐ณ๐ผ๐ฟ๐บ๐ถ๐ป๐ด ๐ง๐ถ๐ฐ๐ธ๐ฒ๐
Think of a movie pass ๐ฅ that can be swapped halfway through for VIP backstage access. A convertible bond starts as debt (steady interest payments) but can be exchanged for shares if the company does well. Safety + upside = why investors love them.
๐ผ ๐๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ ๐ฆ๐๐ผ๐ฐ๐ธ ๐ข๐ฝ๐๐ถ๐ผ๐ป๐ โ ๐ง๐ต๐ฒ ๐๐ผ๐น๐ฑ๐ฒ๐ป ๐๐ฎ๐ป๐ฑ๐ฐ๐๐ณ๐ณ๐
Startups, in particular, canโt always pay big salaries, so they offer employees โoptionsโ instead. Itโs like joining a gym ๐๏ธ with a rule: you can only use the premium facilities after sticking around for a few years. If the company grows, employees cash in big - but if not, the options may expire worthless.
๐ ๐๐ฅ๐ ๐ง๐ถ๐ฝ:
All three instruments give people a reason to bet on the companyโs future success. Warrants and convertibles woo investors. Employee stock options keep talent motivated.
2 months ago | [YT] | 2