1.1.9.2 Warrants

Usually lower than the current market value of the common stock. Warrants are longer-term issues than rights. They generally come to the marketplace as part of a unit, which is comprised of two or more issues. For example, a corporation may issue a combination of bonds and warrants. The bonds are in regular form, and the warrants are used to make the offering more attractive.

The Certificate In the case of either a right or warrant, the certificate itself is referred to as a right or as a warrant. A right certificate could represent 100 rights, and a warrant certificate could represent 100 warrants. The term confuses and is a source of errors in the brokerage community. Operations personnel should always make certain whether the term means the right or warrant certificate or the number of rights or warrants represented there on.