| Warrant |
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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.
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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. |
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