Warrant

Warrant is A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame.


Warrants are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends. They can be used to enhance the yield of the bond and make them more attractive to potential buyers.



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Updated: December 16, 2017 — 3:58 pm

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