warrants

Warrants are financial instruments that give the holder the right to buy a company's stock at a specific price before a certain date. They are similar to options but are typically issued by the company itself. Warrants can be used as an incentive to attract investors or raise capital. If the company's stock price rises above the warrant's exercise price, the holder can buy shares at the lower price, potentially making a profit. Warrants usually have longer expiration periods than options, sometimes several years, making them useful tools for investors seeking to speculate or hedge their positions.