Warrant (Securities) Law and Legal Definition
A security that gives the holder the right to buy the common stock of the issuer at a specified price for a specific period, usually years. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months.
