Warrant

A warrant is a security that gives its holder the right to buy an issuer’s securities at specified terms before expiration.

A simple example

A warrant may permit its holder to buy one common share at a $10 exercise price before a stated expiration date.

Why this matters to income investors

Warrants can provide upside exposure but can expire worthless, dilute existing shareholders when exercised, and have terms that differ from listed options.

How to use warrant in your research

Read the exercise price, expiration, adjustment provisions, redemption rights, cashless-exercise terms, and dilution impact.

This material is general education and information, not individualized investment, tax, or legal advice.