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Warrant

   

Definition: a Warrant is a security that gives the owner the right, but not the obligation, to purchase (Call Warrant) or sell (Put Warrant) stocks at a set price (usually higher than the market price at the time of issuance) within a specific (long) time frame. A Perpetual Warrant has no expiration date and lasts forever.
Warrants are a financial instrument not unlike an put option or call option, but, when they are exercised, new shares of stock are created, whereas when an option is exercised, the owner of the option receives an existing share that is delivered by a counterparty.


   
   
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