A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - Main Page

Whipsaw Glossary

Currently viewing the definition of: Warrants
 
 
 Warrants give the owner the right, but not the obligation, to buy shares in the issuing company at a future date for a predetermined price. The price of a warrant is linked to the underlying share, and will rise and fall in line with the share price, although due to the level of gearing, with greater volatility. Warrants do not have any voting or dividend rights. If the share price is above the exercise price, the warrant will be exercised i.e. the shares will be purchased and a profit made. If the share price is below the exercise price or you are ‘out of the money', the warrant is worthless.  
 


  • Selection from Glossary

    • Gilt Strip
      A UK Government Stock issued by the Bank of England. The bond comprises a set of discounted payments that are made be the Government.