Shares vs Warrants

I’ve seen people trading warrants lately, especially on DWAC(W) then on SBEA(W).
Can someone please explain quickly why/when you would choose to play warrants vs shares?

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I don’t know anything about what warrants are. But I am always up at 4 am watching those early pre market trades and warrants seem to be used as sympathy plays for tickers that are running. Massive percentage gains if you get in and out at the right times. As for what warrants are? I would also like to know more.


From my understanding, the reason why people buy warrants is that it requires less amount of capital than it does to buy shares. The reason why companies offer it is that it allows them to raise capital faster now but hurts them in the future if the stock goes up.

What is a warrant?
A warrant is like a long-dated option (usually open for about 5 years when we are talking about SPAC’s)
It is an option contract that gives the holder the option to buy 1 share, whereas an option contract gives the holder the right to buy 100 shares. I hope this helped.

This is actually something that would be good to have in the education section of the forums. If none does it before me. I will write something up after my exams are over.