What is a warrant?

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What is a warrant?


What is a warrant?

Explanation & AnswerSolution by a verified expert


Warrants are usually issued by a corporation to attract investors to purchase their bonds that pay interest below the market rate.
Warrants once exercised by the investor on or before the expiration date will obligate the issuer to issue shares of stock to the warrant holder at the stated price.

Verified Answer

A warrant is a long-term right to purchase a company's stock at a fixed quantity and price for a given time period.

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