Filter by Categories
Accounting
Banking

Finance




Pre-Funded Warrant


warrant that allows the holder to buy a given amount of a firm’s securities at the so-called nominal exercise price. This exercise price is set at a very low value, usually one cent ($0.01) per share. The pre-funded structure allows the issuing firm to receive the exercise price of a not pre-funded warrant, except for the nominal exercise price, at the time of issuance rather than the time of exercise.

A pre-funded warrant can be exercised, wholly or partially immediately after issuance and typically over a long exercise period (up to 10 years). However, a pre-funded warrant that expires unexercised is valueless and the purchase price of the warrant incurred by the holder is not refundable in any case.

This warrant is also known as a penny warrant.



ABC
Finance, as a field of knowledge, is substantially wide-ranging and virtually encompasses everything in the realm of corporate finance, financial management, ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*