Meaning & use
stock warrant
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Meaning
nouncountablefinancebusiness
A certificate giving the holder the right to buy a company's shares at a set price within a certain period.
Grammar: Countable: you can say 'a stock warrant', 'two stock warrants'. Often used in the plural when talking about a package of them.
Patterns
- issue a stock warrant
- exercise a stock warrant
- a stock warrant for something
- a stock warrant to buy something
The startup offered investors a stock warrant as part of the financing deal.
She exercised her stock warrant when the share price rose above the agreed level.
Stock warrants can expire worthless if the market price never reaches the exercise price.
Word forms
| plural | stock warrants |
|---|
Common combinations
- issue a stock warrant
- The board decided to issue a stock warrant to attract new investors.
- exercise a stock warrant
- He exercised his stock warrant before the deadline.
- stock warrant agreement
- The stock warrant agreement spelled out the terms clearly.
- detachable stock warrant
- The bond came with a detachable stock warrant.
Synonyms and how they differ
Word family
Commonly confused: stock warrant or stock option?
stock warrant vs stock option
A stock option is a contract allowing you to buy or sell shares, usually given to employees; a stock warrant is issued directly by the company and often sold to investors.
Practice
The company decided to _____ a stock warrant to raise additional capital.
Choose one answer.
'Issue' is the correct verb because it means to officially offer or give out something like a warrant or shares. 'Make' and 'do' are too general and do not collocate with 'warrant' in this financial sense.
Make it your own
Write a sentence using “stock warrant”, then check it and compare it with the examples above.