- Warrant
- A guarantee/security allowing the investor to purchase a proportionate stock amount at a particular date in the future and at a particular price, which is generally higher than present market. The price of the ‘warrant’, which is traded in the form of a security, is a reflection of the particular underlying stocks’ value.
They are offered by firms and used as ‘sweeteners’ packaged with other security classes to add to the latter’s marketability. Warrants are similar to call options with significantly longer time periods, sometimes extending to years. They are issued by corporations whereas call options that are exchange traded are not offered by corporations.
Random Finance Terms for the Letter W
