warrant coverage

Definition

An option tied to the issue of common stock that enables investors to acquire additional shares of the stock at a predetermined price. Companies provide warrant coverage to increase the appeal of a stock offering. Investors can increase their return on investment if they exercise their warrants after the stock rises in price.

Use warrant coverage in a sentence

You should try to make sure that you have enough warrant coverage to let you know that you have enough.

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The warrant coverage was provided and Cole thought that he might exercise his right to accumulate the stock at a very fair price.

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They were very enticed by the warrant coverage that was included in the offering of the stock. This additional option would come in handy.

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