stock warrant
(redirected from Stock Warrants)Also found in: Dictionary, Thesaurus, Legal.
Related to Stock Warrants: Equity Warrants
Stock Warrant
A certificate, usually issued with a preferred stock, giving the holder the option of buying an underlying asset at a certain strike price. The strike price is usually higher than the market value of the underlying asset at the time of issue. 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
stock warrant
See warrant.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.