Is a Brokerage obligated to sell "In the money" Warrants prior to expiration?
Is a Brokerage obligated to sell "In the money" Warrants prior to expiration?
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Lordstown · External communityPost link
External question — Personal Finance Stack Exchange
Author: Lordstown
Original post: https://money.stackexchange.com/questions/144356
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Company Press Notice of the public warrant's pending expiration date was not made. Nor was the broker's notice of the pending expiration received until after the expiration date and time. Before expiration sale price was well above that after.
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Bob Baerker · External communityPost link
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Author: Bob Baerker
Original post: https://money.stackexchange.com/a/144375
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Although it's a security, a warrant is effectively a long term option. Assuming that there are no special exchange rate provisions, then at expiration, a call warrant warrant is worthless if below the exercise price and worth its intrinsic value if in-the-money.
Your broker was remiss for not advising you about the expiration in a timely fashion. AFAIK, they have no obligation to sell or exercise your warrant unlike options and the OCC.
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