Warrants
A Warrant is a security that entitles the owner to more stock options in a company at a greatly reduced price to what is currently portrayed on the stock exchange.
Warrants are generally issued along with bonds and can sometimes be sold separately from the bonds or stock.
Different types of warrants are issued. Traditional, Naked or Covered Warrants and Government issued Bonds. Traditional warrants are sold along with Bonds. Naked Warrants are issued without, while Government issued Bonds are sold by Governments when states can't afford to pay their bills and offer an interest rate related incentives.
Please visit the Tools section of our web site to find more detailed information about Warrants and the advantages and disadvantages of these financial market products similar to regular call options.