Exercise Warrants

Definition of 'Exercise Warrants'

An equity warrant offers the holder the right to buy underlying equity at a predetermined price on specified dates, or at any time, up to the end of a predetermined time period. A warrant differs from an option in that options usually have a life of less than 1 year. Warrants are usually issued by companies or by securities houses and have a life span of more than 1 year. The exercise of a company issued warrant will result in an increase of the capital of that company.

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