Warrant


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Warrant

A security entitling the holder to buy a proportionate amount of stock at some specified future date at a specified price, usually one higher than current market price. Warrants are traded as securities whose price reflects the value of the underlying stock. Corporations often bundle warrants with another class of security to enhance the marketability of the other class. Warrants are like call options, but with much longer time spans-sometimes years. And, warrants are offered by corporations, while exchange-traded call options are not issued by firms.

Warrant

A certificate, usually issued with a preferred stock, giving the holder the option of buying an underlying asset, in this case usually more stock, at a certain strike price. The strike price is usually higher than the market value of the underlying asset at the time of issue but lower than the expected market value at some point in the future. Some warrants expire a few years after issuance, but perpetual warrants can theoretically last forever. Unlike options, stock warrants are issued by companies during a round of financing, rather than by an individual investor or brokerage. Companies issue stock warrants to attract investors who might not otherwise be interested.

warrant

A security that permits its owner to purchase a specific number of shares of stock at a predetermined price. For example, a warrant may give an investor the right to purchase 5 shares of XYZ common stock at a price of $25 per share until October 1, 2007. Warrants usually originate as part of a new bond issue, but they trade separately after issuance. Warrants usually have limited lives. Their values are considerably more volatile than the values of the underlying stock. Thus, investment in warrants is not for the timid. Also called equity warrant, stock warrant, subscription warrant. See also debt warrant, perpetual warrant, usable bond.

Warrant.

Corporations may issue warrants that allow you to buy a company's stock at a fixed price during a specific period of time, often 10 or 15 years, though sometimes there is no expiration date.

Warrants are generally issued as an incentive to investors to accept bonds or preferred stocks that will be paying a lower rate of interest or dividends than would otherwise be paid.

How attractive the warrants are -- and so how effective they are as an incentive to purchase -- generally depends on the growth potential of the issuing company. The brighter the outlook, the more attractive the warrant becomes.

When a warrant is issued, the exercise price is above the current market price. For example, a warrant on a stock currently trading at $15 a share might guarantee you the right to buy the stock at $30 a share within the next 10 years. If the price goes above $30, you can exercise, or use, your warrant to purchase the stock, and either hold it in your portfolio or resell at a profit. If the price of the stock falls over the life of the warrant, however, the warrant becomes worthless.

Warrants are listed with a "wt" following the stock symbol and traded independently of the underlying stock. If you own warrants to purchase a stock at $30 a share that is currently trading for $40 a share, your warrants are theoretically be worth a minimum of $10 a share, or their intrinsic value.

warrant

a FINANCIAL SECURITY issued by a company to raise capital, which gives the holder the right to purchase SHARES in the company at some specified future date at a set price. Warrants are quoted on the STOCK MARKET and thus can be bought and sold in the same way as the issuing company's shares, usually at a much lower price. In essence a warrant is similar to convertible LOAN STOCK (but without interest payments) which can be converted into equity at the appointed time. The holder of a warrant forgoes current income in the hope of making a sizable capital gain on conversion.

Warrant

A certificate authorizing the holder to buy a corporation's stock at a specified price, either indefinitely or within a certain time. Warrants are different from rights in that they generally last longer, and the price at which the holder is entitled to buy the stock usually is more than the stock's market price when the warrant was issued.
References in periodicals archive ?
The amount of the cash proceeds that the Company will receive will depend upon the number of warrants exercised for cash; if all outstanding warrants are exercised for cash, the Company will receive proceeds of approximately $2.
Following this closing, the share capital of Metanor is now 18,298,598 issued and outstanding common shares, 7,547,467 common share purchase warrants, 416,600 broker warrants (including 113,100 broker warrants permitting to subscribe to Units A).
NASDAQ: MTCI MCTIW) has been informed by NASDAQ that the common stock and warrants will be relisted for trading as soon as possible.
The proceeds of the private placement and exercise of the Warrants, if any, will be used to provide general working capital.
Inquiries concerning the exercise or redemption of the Class B Warrants should be directed to the information agent -- Shareholder Communications Corporation at 800-221-5724.
Concurrently, Bolnisi Gold NL, the Corporation's majority shareholder (Bolnisi owns approximately 82% of the Corporation's common shares and owns 12,500,000 Warrants issued by the Corporation) has indicated that it intends to exercise enough of its own warrants to maintain its current percentage ownership.
In the event that all of the Warrants acquired by the Offeror are exercised, the Offeror would hold approximately an additional 0.
12, 1992 regarding the prior public warrants (SKNSW).
Rule 41(f)(2) Return on Warrant: Within 10 days after use of the device has ended, the officer executing the warrant must make the return to the magistrate judge specified in the warrant.
Often, the warrant agreement stipulates service requirements, vesting or other service-related parameters; however, the number of warrants issued is tied to the number of shares purchased.
To obtain the loan, Jordan gave the lenders warrants to purchase stock at $500 per share, the current market price.
Responding Correctly to a subpoena or search warrant served in connection with an enforcement initiative can help you to defend against fraud-related charges, should they be brought.