Warrant

tl;drFinancial instruments giving holders the right to purchase company shares at a specified price within a set time period.

Similar to options but typically issued by companies rather than traded on exchanges.

Consider a company issuing bonds with attached warrants allowing investors to buy shares at $20 within five years. These warrants provide additional investment upside potential while helping the company secure financing on better terms.

Managing warrants requires understanding dilution impact and exercise timing. Organizations must track outstanding warrants while planning for potential exercise.

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