Introduction of the term Equity Warrants

Question

Give a brief introduction of the term Equity Warrants?

Answer 1

Equity warrants are the type of warrants that can be called or put. It is like an alternative which gives the holder to purchase the security related to its option at a convinced price, time and quantity. It is issued by the company. The two warrants that come under this are illustrated below:-

i) Call warrants : - it offers the rights to the holder to purchase the securities that are related to their warrants or the shares that are specified in number.

ii) Put warrants : - it offers the rights to the holder to sell back to the issuer at a particular price on or before the date that has been stated while purchasing.