warrant
DefinitionA 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 warrant's exercise price, then the investor can buy the security at the warrant's exercise price and resell it for a profit. Otherwise, the warrant will simply expire or remain unused. Warrants are listed on options exchanges and trade independently of the security with which it was issued. also called subscription warrant.
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Related Terms
kicker, dilution, ex-warrants, privileged bond, put warrant, Brady bond, Convertible Eurobond, delayed opening, diluted earnings per share, ex-all and
warrant appears in these other terms
interest warrant, warranty deed, implied warranty, warranty
warrant appears in the definitions of these other terms on BusinessDictionary.com
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