Warrant

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Dictionary Says

Definition of 'Warrant'

A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue as a "sweetener" to entice investors.
Investopedia Says

Investopedia explains 'Warrant'

The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months.

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'Warrant'

  • How are stock warrants different from stock options?

    http://www.investopedia.com/ask/answers/08/stock-option-warrant.asp
    ... A stock warrant is just like a stock option because it gives you the right to purchase
    a company's stock at a specific price and at a specific date. ...

  • Warrants: A High-Return Investment Tool

    http://www.investopedia.com/articles/04/021704.asp
    ... A warrant is like an option. ... It is unlike an option in that a warrant is issued by
    a company, whereas an option is an instrument of the stock exchange. ...

  • A User's Guide To Warrants

    http://www.investopedia.com/articles/trading/10/warrants.asp
    ... (For a background reading, see Warrants: A High-Return Investment Tool.) What Is
    a Warrant? ... The higher the gearing, the more valuable the warrant. ...

  • Investing In Warrants

    http://stocks.investopedia.com/stock-analysis/2010/Investing-in-Warrants-USAT-USATZ-HCII-HCIIW-WFC-WFC.WS1015.aspx
    ... The longer the time, the greater chance for the warrant appreciate in value. ... Remember
    that the warrant price will fluctuate between now and expiration. ...

  • Bank Warrants Your Atttention

    http://stocks.investopedia.com/stock-analysis/2012/Bank-Warrants-Your-Atttention-WFC-AIG-BAC0110.aspx
    ... One of the by-products of the government sponsored Troubled Asset Relief Program
    (TARP) was the issuance of warrant securities to Uncle Sam in exchange for an ...

  • 5 Equity Derivatives And How They Work

    http://www.investopedia.com/articles/optioninvestor/10/equity-derivatives.asp
    ... When issued, the price of a warrant is always higher than the underlying
    stock price. ... This creates a warrant holder's primary risk. ...

  • Government Bank Bailouts Paying Off

    http://stocks.investopedia.com/stock-analysis/2009/Government-Bank-Bailouts-Paying-Off-C-NTRS-GS-MS-AXP0902.aspx
    ... might have assumed that these warrants were worthless because they were out of the
    money; however, the government timed its warrant investment perfectly, and ...

  • Jackson Hewitt Remains Cheap

    http://stocks.investopedia.com/stock-analysis/2009/Jackson-Hewitt-Remains-Cheap-JTX-HRB-WMT-INTU1204.aspx
    Whether JTX turns out to be a bargain or not, time will tell. However, enough points
    of interest along with a very cheap share price warrant a closer look. ...

  • Series 63 Study Guide - The Foundation - The Uniform Securities ...

    http://www.investopedia.com/exam-guide/series-63/foundation/usa-uniform-securities-act-part-6.asp
    ... A gift of assessable stock involving an offer and sale; and; A sale or offer of
    a warrant or right to purchase or subscribe to another security of the same or ...

  • Series 63 Study Guide - Securities - Viatical Settlements and ...

    http://www.investopedia.com/exam-guide/series-63/securities/viatical-settlements-definition-sale.asp
    ... a gift of assessable stock involving an offer and sale; and; a sale or offer of
    a warrant or right to purchase or subscribe to another security of the same or ...

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