Capital trust has issued warrants to its promoter and employees (esop)

Dear friends

Capital trust has issued warrants to its promoter and employees (esop) which can be converted into equity with current market price of the stock. Since then stock price is falling.
What is the significance of this?
Company is making good profits and growing at CAGR of more than 50%

 

ESOP is an employee benefit which is a general practice in many MNC companies. You are issued a small number of shares but there will be a vesting period, generally 4 years, and every year 25% of the issued number of shares can be sold.

It is more of an employee retention perk and in no way related to fall in prices. Google should help with ESOP details.

Cheers
G1

 

Thanks