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 ?
75) With the rise of technology, it was necessary for courts to determine the constitutionality of warrantless searches of smart phones.
Where police reasonably believe that applying for a warrant would risk the loss of evidence, warrantless searches are reasonable under section 8 of the Charter.
On appeal to the Court of Appeals for the Eastern District of Missouri, the State argued that the Supreme Court of the United States established that the rapid dissipation of alcohol in an individual's bloodstream is by itself a "special fact" constituting an "exigent circumstance" justifying a warrantless and nonconsensual blood draw on an alleged intoxicated driver.
41) The magistrate court held that warrantless inspections of taxidermists' records and customers' specimens authorized by S.
In the first case, the Supreme Court of Canada found that the accused held absolutely no reasonable expectation of privacy, which meant that the warrantless police inspection of documents in question could not be characterized as a "search"--dodging the application of section 8 entirely.
The Court also rejected Stuart's contention that the altercation the officers observed was not serious enough to justify their warrantless entry into the home.
But there was a doctrinal obstacle to justifying warrantless searches of automobiles.
Speaking of 'grave' danger, Attorney General Alberto Gonzales recently claimed that critics of the warrantless wiretapping program had an idea of freedom that was "divorced from civic responsibility--is superficial and is itself a grave threat to the liberty and security of the American people.
The president has defended his warrantless domestic spying with an imperial theory of inherent constitutional power that would empower him to open mail, break in and enter homes, or torture detainees, even in violation of federal criminal statutes.
To federal judge ANNA DIGGS TAYLOR, a Carter era appointee, for preening "there are no hereditary Kings in America," in her 44-page decision to strike down NSA's warrantless wiretaps as unconstitutional, apparently oblivious of the surveillance-driven roll-up of the terrorist plot in the UK to blow up US-bound airliners.
Applying the emergency-aid doctrine, the state supreme court concluded that the injury the police witnessed was not sufficiently serious to justify warrantless entry into the home.
Professors and students can get caught up in the net of warrantless intercepts of phone and e-mail communications, and this could compromise confidential interviews they may be conducting on sensitive matters," notes Larry Diamond, a professor at the University of California, Berkeley.