Investment DictionaryWarrants
Warrants are derivative securities that give the right to acquire shares of the issuer at the predetermined price and time. From the holders position there is no difference between warrant and call option. The main differences between those that warrants are created by the issuer itself (it means new shares will be acquired) while options usually are created by banks or brokerage companies.
As warrants are issued by companies, they usually are long-term oriented securities and often take part in more difficult deals of corporate finance.
Investors should to be careful when are investing in the company that has issued many warrants because sometimes it might dilute capital of current owners very significantly. | ![]() Recommended Topics Financial Planning Balance Sheet Income Statement Margin Call Buying on Margin Relative Valuation Total Expense Ratio Investment Management Fees Most Popular Articles Investing in Gold (I) Investing in Gold (II) Investing in Uncertain Period
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