Put Warrant
 |
Definition of 'Put Warrant'A type of security that gives the holder the right (but not the obligation) to sell a given quantity of an underlying asset for an agreed upon price on or before a specified date. A put warrant is a company-issued option to sell back to the issuer a specified number of shares of the company's common stock at a particular price sometime in the future. Unlike options that are instruments of an exchange, warrants - including put and call warrants - are issued by companies. |
 |
Investopedia explains 'Put Warrant'There are two types of warrants - put warrants and call warrants. All warrants have an expiration date - the last day that the rights of the warrant can be exercised. If a warrant is not exercised before the end of its fixed tenure, it expires worthless. A put warrant's exercise price (also called the strike price) is the price at which the holder can sell the warrant. Both put and call warrants are classified by their exercise style. American warrants can be exercised anytime on or before the expiration date; European warrants can only be exercised on the day of expiration. Investors can use put warrants to hedge against falling share values of stock held in their portfolios. |
Related Definitions
Articles Of Interest
-
Bear Put Spreads: A Roaring Alternative To Short Selling
This strategy allows you to stop chasing losses when you're feeling bearish. -
Warrants: A High-Return Investment Tool
Discover the advantages of this largely unexploited investment vehicle. -
Hedging With Puts And Calls
This trading strategy can reduce your risk - but only if you use it effectively. -
Introduction To Put Writing
Learn about a strategy that may be appropriate if you have a positive outlook on a stock. -
How are stock warrants different from stock options?
A stock option is a contract between two people that gives the holder the right, but not the obligation, to buy or sell outstanding stocks at a specific price and at a specific date. Options ... -
Warrants
Learn more about this derivative security. -
Are High-Yield Bonds Too Risky?
Despite their reputation, the debt securities known as "junk bonds" may actually reduce risk in your portfolio. -
What is a derivative?
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index or security. Common underlying instruments include: bonds, commodities, ... -
Find Investment Quality In The Income Statement
Use these key attributes to uncover top-level investments. -
The 5 Types Of Earnings Per Share
A look at the five varieties of EPS and what each represents can help an investor determine whether a company is a good value, or not.
Free Annual Reports
