Emerging Growth Stocks Using Warrants More to Get Funds;
Large Issues Causing Stock Price Drops
The practice of by emerging growth companies of selling warrants to specific investors to acquire funds is growing. Originally warrants were sold with the purpose of acquiring funds for growth, but now companies in the red are issuing them too. The stock price of many issuing companies have fallen as investors worry about the dilution of per-share earnings, and concerns about their use are growing.