Warrants

A warrant gives the stockholder the right to purchase stock from the issuer at a specific price within a certain time frame. Warrants are similar to rights, but typically have a longer time horizon, usually measured in years.

Warrants may be added to the sale of new stocks or bonds as a 'sweetener' to make the issue more attractive.

One thing to keep in mind when trading warrants is that warrants typically have expiration dates, at which point it may be possible for the warrant to become worthless, as it would no longer be trading.