subscription warrant
Definition
A certificate, usually issued along with a bond or preferred stock, entitling the holder to buy a specific amount of securities at a specific price, usually above the current market price at the time of issuance, for an extended period, anywhere from a few years to forever. In the case that the price of the security rises to above that of the subscription warrant's exercise price, then the investor can buy the security at the subscription warrant's exercise price and resell it for a profit. Otherwise, the subscription warrant will simply expire or remain unused. Subscription warrants are listed on options exchanges and trade independently of the security with which it was issued. also called warrant.
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