Warehouse receipt Evidence that a firm owns goods stored in a warehouse. Warehousing The interim holding period from the time of the closing of a loan to its subsequent marketing to capital market investors. Warrant A security entitling the holder to buy a proportionate amount of stock at some specified future date at a specified price, usually one higher than current market price. Warrants are traded as securities whose price reflects the value of the underlying stock . Corporations often bundle warrants with another class of security to enhance the marketability of the other class.
Warrants are like call options , but with much longer time spans-sometimes years.
And, warrants are offered by corporations, while exchange-traded call options are not issued by firms. Warranty A guarantee by a seller to a buyer that if a product requires repair or remedy of a problem within a certain period after its purchase, the seller will repair the problem at no cost to the buyer. Wash Gains equal losses. Wash sale Purchase and sale of a security either simultaneously or within a short period of time, often in order to recognize a tax loss without altering one's position . Watered stock A stock representing ownership in a corporation that is worth less than the actual invested capital , resulting in problems of low liquidity , inadequate return on investment , and low market value .