Investors who bought shares of Bank of America (NYSE:BAC) during the past several years have been handsomely rewarded thus far, but is buying the bank's seldom discussed TARP warrants (NYSE:BAC-AW) (NYSE:BAC-BW) the better bet? Issued as part of the TARP program in late 2008 and early 2009, the warrants give the investor the right to buy Bank of America at a set price in the future.

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analyst David Hanson takes a question from the mailbag about the Bank of America TARP warrants, how dividends impact the price, and which class of warrants he would buy.

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David Hanson owns shares of American International Group, Capital One Financial (Warrant), PNC Financial Services, and PNC Financial Services Group (Warrant). The Motley Fool recommends American International Group, Bank of America, and Wells Fargo. The Motley Fool owns shares of American International Group, Bank of America, Capital One Financial., PNC Financial Services, and Wells Fargo and has the following options: long January 2016 $30 calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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