What is a warrant in finance?

[deepak]

I see warrants discussed in stock market news. What is a warrant in finance, and how is it different from stocks or options?

 

[Clay]

A warrant in finance is a security that gives the holder the right to buy a company’s stock at a fixed price before a certain date.

 

[Emly]

In finance, a warrant is a security that gives you the right (but not the obligation) to buy a company’s stock at a fixed price before a certain date.

 

[Felix]

Warrants are long-dated securities that cause dilution when exercised. This is a key difference from options. Companies often issue them during fundraising to make deals more attractive to investors.

 

[David Williams]

A financial warrant allows a holder to buy or sell the stock of a company at a certain price prior to a specified expiration date but without the requirement to do so.A financial warrant allows a holder to buy or sell the stock of a company at a certain price prior to a specified expiration date but without the requirement to do so.

 

[Selina]

In finance, a warrant represents a security that allows the owner the right, though not the obligation, to purchase or sell a corporation's stock at a predetermined price within a specified timeframe. Typically, the company issues it.