Hello, I am looking at a stock (Holicity Inc) and there are two types of stock to choose from- "Class A Common Stock" and "Units". Can anyone explain the difference and which I should choose to invest in if I did so? Thanks!
When some companies do an IPO, they also include warrants, which is what Holicity did. Each unit consists of one share and one-third of a warrant, exercisable at $11.50. The unit (ending in U) will include the warrant (or warrants if they issued more than one type) as well as the common. In this case: HOL = common stock HOLUW = warrant HOLUU = equals the common plus the warrant For a standard investment, you'd want the common stock.
Warrants make me nervous, brings back memories of load knocking at my door. I'll settle for the commons with options like bonds.
