Index warrant

Index warrant

A stock index option issued by either a corporate or a sovereign entity as part of a security offering, and guaranteed by an option clearing corporation.

Index Warrant

An option on a stock index or other security index. Those who buy and sell index warrants are often hedging against the overall movement of the index that the option tracks. For example, one may take a long position on an index fund, where the investor benefits if the index rises, and simultaneously purchase put index warrants locking in a certain price to sell the index fund if the long position does not rise.
References in periodicals archive ?
After setting up a futures operation for Barings in Hong Kong, he joined the capital markets division of Bankers Trust and organized the first listing of an index warrant in Asia.
In addition to stock warrants, there are also domestic stock index warrants such as those for the Taiwan Top 50 Tracker Fund and overseas stock index warrants such as those for the Hong Kong ETF (exchange traded fund).
Securities and Exchange Commission registering $15 billion of securities that may be issued in the form of debt securities, common stock warrants, index warrants, preferred stock, depositary shares, stock purchase contracts, stock purchase units, and common stock.
Securities and Exchange Commission registering $10 billion of securities which may be issued in the form of debt securities, junior subordinated debt securities, index warrants, and trust preferred securities of subsidiary trusts.