Friday, January 7, 2011

Warrants

A warrant is a type of security or derivative that gives the holder the right but not the obligation to subscribe to a bond or share issue at a certain price and time. Warrants may be issued to existing shareholders as part of a capital raising, or may be attached to new shares/bonds in a capital raising as an incentive or 'sweetener'. Warrants may also be tradeable, and may be quoted/listed on an exchange.

Synonyms: Rights, Options, Equity warrants

Comments?
If you have any further questions or would like to add to this fund management term, then please submit your thoughts below.

No comments:

Post a Comment