CEFR C1
stock-purchase warrant
noun phrase
Meaning
A financial instrument that gives the holder the right, but not the obligation, to purchase a certain number of shares of a company's stock at a predetermined price before a specified expiration date.
Examples
- The investor bought a stock-purchase warrant to speculate on the potential increase in the company's stock price.
- The company issued stock-purchase warrants to raise capital and incentivize investors.