Warrant Definition

Below please find a definition of “Warrant”

Financial Analysis Training & Glossary TermsWarrant: A certificate giving the holder the right to purchase shares of stock at a stipulated price within a specified time span. Warrants are like call options, but with much longer time spans — sometimes years or even forever. They are often attached to other securities (such as bonds) as an added purchase inducement or “sweetener” to enhance marketability. After issuance, a warrant may be traded separately, the price of which reflects the value of the underlying stock.

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