Super Finance Glossary

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Warrant

Warrant
Definition: 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
Definition: A call option issued by a company on its own stock. The company specifies the exercise price and maturity date. Once issued, the warrant can be traded on exchanges.