Warrant

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Related to warrants: Search warrants, Stock Warrants

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 ?
If all of the Warrants are exercised during the Early Exercise Period, Nano One would:
SP Group estimates that the warrants will have a value of DKK7.52 for each warrant with a total market value of approximately DKK1,804,605.00.
Also, warrants which are not exercised within one month after the occurrence of an extraordinary event, that is from the date of this announcement, shall automatically lapse without further notice or compensation.
The warrants have been trading under the symbol (NYSE: GM.WS.B) and were originally issued in July 2009.
Reportedly, the purpose of the grant of warrants is to reflect the company's objective to provide incentive for long-term shareholder value creation.
Reportedly, the purpose of the grant of warrants is to reflect the company's objective to incentivise long-term shareholder value creation.
PTI Leader through Babar Awan Advocate has filed a petition in IHC while taking the plea that ECP has no authority to issue non-bailable arrest warrants of Imran khan and issuance of non-bailable arrst warrants against PTI Chief on October 12 was unconstitutional.
Following the acquisition of special warrants, the VR Entities own (a) 25,657,713 common shares, (b) 11,517,857 common share purchase warrants and (c) 3,334,000 Special warrants.
The I Corps G-4 at Joint Base Lewis-McChord (JBLM), Washington, hosted the inaugural JBLM Sustainment Warrant Officer Conference on 30 November 2011.
Part of the confusion on behalf of the other warrants was that our roles and responsibilities were not well documented and that each commander or rater would determine the expectations of their warrant officers.
Thanks to the introduction of the market-maker mechanism and vigorous promotion by issuing institutions, warrants are gaining popularity with Taiwanese investors.
Prize Mining Corporation (TSX V: PRZ), a Canada-based company that explores for mineral resources, has announced extension of expiry date of certain of its outstanding common share purchase warrants.