In: Finance
How are warrants used in corporate finance? Explain what you have found through your readings and research.
Warrants are basically options issued by a firm and it gives the buyer the right to purchase the firm's stock at a given price in a specified period. Warrants are traded in exchange. Warrants that grant the right to sell the underlying security (Bond/stock) are called put warrants whereas the warrants that give the right to buy the underlying security are called call warrants
There are many uses of Warrants in Corporate finance, some of them are: