Accounting Dictionary

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Warrant

Definition: A warrant is an option to purchase a certain number of a company's shares at a pre-determined price, within a defined time period. Warrants are frequently included in a bond issuance, so that the bond buyer owns both the bond and its accompanying interest payments, as well as the option to profit from any increase in the company's stock price.

Warrants to not give their holder the right to receive dividends, and have no voting rights.