An option (warrant) which gives the holder (usually bondholders) the right to buy the stock of a corporation at a specified price, up to a specified expiration date. This option is typically issued by a company on whose stock the option is written.

Equity warrants are usually attached to bonds as sweeteners in order to sell the bond with a lower coupon rate. Warrants are essentially long-term options or financing vehicles, and tend to have considerably longer maturities at issue than do call options.