WARRANT: A certificate, usually issued along with a bond or preferred stock, entitling the holder to buy a specific amount of securities at a specific price, usually above the current market price at the time of issuance, for an extended period, anywhere from a few years to forever. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Furthermore, the life of a warrant is often measured in years, while the life of a typical option is measured in months.

WRITE/WRITER: This is trader or brokerage that sells an option short.

Was this article helpful?
0 out of 0 found this helpful