Stock-purchase Warrant (Noun)
Meaning
A type of security issued by a corporation (usually together with a bond or preferred stock) that gives the holder the right to purchase a certain amount of common stock at a stated price; "as a sweetener they offered warrants along with the fixed-income securities".
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued a stock-purchase warrant to investors, allowing them to buy shares at a discounted price if certain conditions were met.
- As part of the merger agreement, the acquiring company offered stock-purchase warrants to the target company's shareholders.
- The investor purchased a bond with a stock-purchase warrant attached, hoping to profit from the potential increase in the company's stock price.
- The stock-purchase warrant gave the holder the right to buy 100 shares of common stock at $50 per share, a significant discount to the current market price.
- The company used stock-purchase warrants as a sweetener to attract investors to its new bond offering, which carried a lower interest rate than similar bonds in the market.