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Warrant Definition

Warrant Definition

Warrant Definition / Explanation

Warrant DefinitionA certificate giving the holder the right to purchase shares of stock at a stipulated price within a specified time span. Warrants are like call options, but with much longer time spans -- sometimes years or even forever. They are often attached to other securities (such as bonds) as an added purchase inducement or "sweetener" to enhance marketability. After issuance, a warrant may be traded separately, the price of which reflects the value of the underlying stock.

Perpetual warrants are warrants that have no expiration date.

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http://richard-wilson.blogspot.com/2007/08/warrant-definition.html

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