Warrant Canada USA Warrant A security that gives the holder the right to purchase securities from the issuer of the warrant at a specific price. Warrants are usually considered long-term instruments, expiration dates are typically years in the future.
Warrants are similar to call options.
But the lifetime of a warrant is often measured in years, while the lifetime of a call option is months. Furthermore, warrants are issued and guaranteed by the company whereas options are exchange instruments and not issued by the company. Warrant FAQ's - a brief article on the basics of warrants, a great example as well. All rights reserved.