Warrant

A warrant is a certificate entitling the purchaser to buy a specific number
of shares of the company's common stock at a specified price in a clearly
defined period of time, or for perpetuity. People usually buy warrants if
they feel the company's stock will rise in the future.

Warrant holders exercise the warrant to purchase more shares of the
company's stock when the stock price is higher than the price the warrant
offers. Some companies hype their stock to get the price up so that the
warrants get exercised. The stock price usually falls afterward. Get out.

We've just covered some of the more general rules that govern selling a
stock, but what other factors can influence the stock market and your
trading decisions. Let's briefly discuss six market indicators that can be
of vital importance to all investors.

One of the best known indicators is the (GNP). The Gross National
Product measures the activity and market prices of all goods and
services produced during the year. The GNP describes our economic
condition and indicates which direction it's headed.

The Consumer Price Index (CPI) measures changes in consumer prices
based on a monthly survey conducted by the U.S. Bureau of Labor
Statistics. They monitor changes for food & beverages, housing, clothing,
personal items, transportation, health care, entertainment, and energy.

The Producer Price Index (PPI) measures changes in wholesale prices of
products and services. All the calculations are released on a monthly
basis by the Bureau of Labor Statistics. Prices are measured as products
move through the manufacturing and distribution stage to the consumer.

Interest Rates have a tremendous impact on the markets. When demand for money increases, interest rates rise. As the rates rise the demand
declines. When people borrow less the supply expands and interest rates
start to fall again. Business likes to expand if interest rates are low.

Inflation has an impact on the markets also. Inflation is a condition that
occurs when prices rise resulting in your not being able to purchase as
much for your dollar. The Federal Reserve Board frequently changes
interest rates to restrain inflation.