What Is a Stock Purchase Warrant?
A stock purchase warrant is a security that is typically issued to accompany a preferred stock or bond offering. Corporations issue them to sweeten the deal for potential investors. Warrants give holders the right to buy a set number of shares of common stock at a specified price within a fixed time frame. This is akin to a standard stock option, but warrants are investment vehicles under the purview of companies rather than a stock exchange.
