Naked Warrant

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Dictionary Says

Definition of 'Naked Warrant'

A warrant that is issued without a host bond. A naked warrant allows the holder to buy or sell a particular financial instrument, such as a bond or shares, but unlike a normal warrant, it is not sold with an accompanying bond. Naked warrants are typically issued by banks or other financial institutions that are not also issuing a bond, and can be traded in the stock market.

Investopedia Says

Investopedia explains 'Naked Warrant'

Normal warrants are issued with an accompanying bond (a warrant-linked bond), giving the investor holding the warrant the right to exercise it and acquire shares of the company that issued the underlying bond. The company writing the bond is typically the same company issuing the underlying bond. Naked warrants, on the other hand, can be backed by a variety of underlying investments, including stocks, and are considered more flexible.
Search results for

'Naked Warrant'

  • A User's Guide To Warrants

    http://www.investopedia.com/articles/trading/10/warrants.asp
    ... Naked warrants are issued as is and without any accompanying securities ... to calculate
    EPS (instead of the "if converted" method), and amortized warrant value can ...

  • S&P 500 Options On Futures: Profiting From Time-Value Decay

    http://www.investopedia.com/articles/optioninvestor/02/071702.asp
    ... nevertheless be enough indicators flashing a technical bottom to warrant establishing
    a ... By using a spread instead of writing naked options, we eliminate the ...

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