Warrant
Warrant is a call option, issued by a company, that allows the holder to buy a stated number of shares of stock from the company at a specified price. Warrants are generally distributed with debt,or preferred stock, to induce investors to buy those securities at lower cost.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Warrant. A call option, issued by a company, that allows the holder to buy a stated number of shares of stock from the company at a specified price. Warrants are generally distributed with debt,or preferred stock, to induce investors to buy those securities at lower cost.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
