Warrants

Warrants are options that have longer maturities than regular options. Warrants may be issued by companies to enable them to raise money for investments.

Warrants have a higher risk than ordinary shares and therefore also provide higher returns. Warrants are purchased for a price and a warrant is a right to buy shares of a company within a certain time at a certain price.

Warrants will be worthless if the stock price does not rise above the strike price before or on the date of exercise. Warrants can be traded on a secondary market, a stock/option exchange.