Loading the player...

DEFINITION of 'Wedding Warrant'

A warrant that can only be exercised if the host asset, typically a bond or preferred stock, is surrendered. Until the call date of the host asset is reached, the warrant can only be exercised if the holder surrenders an equal amount of host asset. The time period in which the investor has to surrender the equal amount of host asset is set in the warrant itself. After that time has passed, the warrant's holder can buy non-callable bonds.

Also known as "harmless warrant" or "wedded warrant."

BREAKING DOWN 'Wedding Warrant'

Wedding warrants are so named because the warrant is "wedded" for a certain period of time, and can only be "divorced" from the host bond after that time has passed. Wedding warrants were introduced as financial products in the 1980s. Investors typically don't use them because they have to hold the warrant for a long period of time until the call date is reached, or risk having to buy the host bond as well.

RELATED TERMS
  1. Harmless Warrant

    A warrant that requires the holder to surrender a similar bond ...
  2. Warrant Premium

    The warrant premium represents the cost of purchasing a share ...
  3. Warrant Coverage

    Warrant coverage is an agreement between company and shareholders ...
  4. Call Warrant

    A call warrant is a financial instrument that gives the holder ...
  5. Put Warrant

    A put warrant is a type of security that gives the holder the ...
  6. Piggyback Warrants

    Additional warrants that are acquired following the exercise ...
Related Articles
  1. Investing

    Investing In Stock Rights And Warrants

    Learn why many companies choose to issue rights or warrants as an alternative means of generating capital and how their value is determined.
  2. Trading

    NYIF Instructor Series: Warrants

    In this short instructional video Anton Theunissen explains what a warrant is and how it works.
  3. Financial Advisor

    Cash Value vs. Surrender Value: What Is the Difference?

    How much you actually receive from the cash value of your life insurance policy is based on the surrender value, which can sometimes be much lower.
  4. Insurance

    The Hidden Costs Of Wedding Insurance

    Weddings don't always go smoothly. Here's how you can protect yourself from things backfiring.
  5. Investing

    Warren Buffett Makes $12 Billion on a Single Bank of America Investment

    Berkshire Hathaway will acquire 700 million common shares of the bank's stock.
  6. Personal Finance

    How To Save For A Wedding

    Most couples spend over $25,000 on a wedding. Here are some ideas for setting aside and saving money for the big day.
  7. Small Business

    The Pros and Cons of Using Airbnb

    Here, we look at Airbnb - what it is, how it works, and the pros and cons of using this online rental marketplace.
  8. Managing Wealth

    Top 5 Most Expensive Celebrity Weddings

    While you may not have the funds to be as lavish as these weddings, they may give you some inspiration for your own.
  9. Investing

    Plug Power Prices $30M Stock Offering

    The offerings, due to close on Dec. 22, will go toward the prepayment of an outstanding loan.
  10. Personal Finance

    Is Airbnb Safe? What You Need To Know

    Thinking of booking a room or listing your home on Airbnb? Get up to speed on safety features for both guests and hosts.
RELATED FAQS
  1. Is there a secondary market for warrants?

    Find out how to trade warrants on the primary market, the secondary market and the over-the-counter market, including how ... Read Answer >>
Hot Definitions
  1. Treasury Yield

    Treasury yield is the return on investment, expressed as a percentage, on the U.S. government's debt obligations.
  2. Return on Assets - ROA

    Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
  3. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going ...
  4. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  5. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  6. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
Trading Center