Stock Market Investors » Glossary of Stock Terms » What is a Warrant?

What is a Warrant?

Investors have many tools to choose from when stock investing. One of them is warrant. The holder of a warrant has the right to buy a determined number of shares at a specified price. However, the warrant holder is not obliged to do so.

Many companies issue warrants in order to stimulate investors when the company issues new stocks.

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For knowledge we can highly recommend you subscribe to the The Wall Street Journal.

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