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.

BREAKING DOWN '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.

  1. Convertible Preferred Stock

    Preferred stock that includes an option for the holder to convert ...
  2. Call Warrant

    A financial instrument that gives the holder the right to buy ...
  3. Ex-Warrant

    The trading of shares when a warrant has been declared but not ...
  4. Contingent Convertibles - CoCos

    A security similar to a traditional convertible bond in that ...
  5. Warrant Coverage

    An agreement between a company and its shareholders whereby the ...
  6. Warrant

    A derivative security that gives the holder the right to purchase ...
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