Stock Warrant (Noun)
Meaning 1
A written certificate that gives the holder the right to purchase shares of a stock for a specified price within a specified period of time.
Classification
Nouns denoting communicative processes and contents.
Examples
- The investor carefully considered purchasing a stock warrant, weighing the potential benefits of the potential share price increase against the upfront cost of the warrant.
- Stock warrants can be used by companies as an incentive to attract new investors or as a financing tool.
- In this deal, the company will issue 100,000 stock warrants to the investors, each exercisable at $5 per share within the next 3 years.
- After purchasing the stock warrant, Sarah decided to exercise it, using the opportunity to buy 1,000 shares of the company at a lower price.
- Before buying a stock warrant, John studied the market conditions, understanding that if the company's share price does not exceed the exercise price, the warrant becomes worthless.
Hypernyms
Meaning 2
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.