A warrant that a company writes on its own common stock, giving the buyer/holder the right to sell the company’s common stock to the issuing company at a preset price. This warrant allows the company to receive an option premium from buyers in addition to being able to create a hedge against the exercise of options held by employees. It is also instrumental to companies seeking to increase their earnings per share (EPS) as it enables share repurchase from shareholders.
January 5, 2025
