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Stock option warrant
A warrant that gives the holder the right, but not the obligation, to buy a specific number of shares that have yet to be issued by the issuing entity, under conditions, within a timeframe and at a price specified at the time of the warrant's issue.
(1) Share purchase warrants differ from equity call options in that, at the time of exercise, the warrant holder exercises its right with the warrant issuer, which is also the share issuer, whereas the equity call option holder exercises its right with the assigned option writer. When share purchase warrants are part of a financing transaction, they are usually initially attached to a bond or share issued by a company.
(2) Share purchase warrants generally have longer terms than subscription rights.
(3) Other terms such as share warrant and stock option warrant are sometimes used to designate a share purchase warrant.
Translations
Synonyms and variations
- Equity warrant 2.
- Share purchase warrant
- Share warrant
- Stock purchase warrant
- Stock warrant 2.
- Subscription warrant 2.
- Warrant 3.