Undetachable Stock Warrant
Definition of 'Undetachable Stock Warrant'A right attached to a bond that can be redeemed for stock, but cannot be sold separately from the bond. Undetachable stock warrants are considered low-risk because they can be substituted for another security with a higher return.An undetachable stock warrant is also referred to as a convertible bond. |
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Investopedia explains 'Undetachable Stock Warrant'A warrant is a type of certificate issued with a preferred stock. A preferred stock gives its holder claim to earnings and assets prior to common stockholders. The warrant enables the holder of the certificate to buy a certain amount of stock at a specific date at a specific price. Most often, this price is higher than the market price when the warrant or convertible bond is issued. |
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