warrant

A warrant is a financial instrument that gives the holder the right to buy a company's stock at a specific price before a certain date. Think of it as a sort of optional ticket that can increase in value if the stock price rises. Companies issue warrants to raise capital or attract investors, often alongside other securities. Unlike shares, warrants don't represent partial ownership until exercised. They are useful tools for investors to potentially gain from stock price increases with limited initial investment, while companies benefit from the capital raised if the warrants are exercised.