A warrant (a put warrant) that confers on the warrant purchaser the right to sell to the company one share of its common stock on a specified expiration date at a preset strike price. The warrant purchaser pays the issuing company an up-front cash premium for this right. Exercise will take place if the stock price is below the strike price at expiration. If the stock price is greater than or equal to the strike price at that date, the warrant expires worthless.

The reverse of an equity put warrant is an equity call warrant.