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.