XW

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DEFINITION of 'XW'

A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters. The qualifier will follow the ticker symbol and be preceded by a space or hyphen.

BREAKING DOWN 'XW'

Warrants are issued by the same company that issued the stock and can be traded with that stock or separately. A stock trading with warrants attached uses the qualifier "ww." A warrant gives the holder the right, but not the obligation, to purchase additional stock from, or sell stock back to, the issuer at a predetermined price within a specific time frame, usually a few years. A stock that is trading ex-warrant previously had a warrant attached but no longer does. The stock's price should be lower as a result.

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RELATED FAQS
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    A stock option is a contract between two people that gives the holder the right, but not the obligation, to buy or sell outstanding ... Read Full Answer >>
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    Typically, stock warrants are derivative instruments added to new issues of stocks or bonds to make these issues more attractive. ... Read Full Answer >>
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    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>
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