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A certificate without an expiration date, usually issued with a bond or preferred stock, giving the holder the option of buying an underlying asset (in this case, usually more securities) at a certain strike price, which 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, warrants are issued by companies during a round of financing, rather than by an individual investor or brokerage. Companies issue warrants to attract investors who might not otherwise be interested. See also: Sweetener.
A warrant that has no expiration date. Although many warrants have relatively long maturities, few are perpetual.