A certificate that is issued by a company granting the right to the holder to buy a specific number of shares of stock at a specified price. The exercise duration may be limited (typically 3-5 years) or it may be set in perpetuity. Typically, a warrant gives a bond or preferred stock the option to purchase a certain amount common shares at a preset price known as the exercise price. This price is generally 15% to 20% above the current stock price. Warrants can be traded on stock exchanges.
February 22, 2024
