Warrant

Definition of Warrant

A Warrant is a financial instrument that gives the bearer the right but not the obligation to buy stock at a fixed price for a given period of time.
(Definition continues below)

Warrants are often issued as a "sweetener" or "kicker" in a funding round. They are given to investors as a bonus for making their investment, either in an equity financing or a debt financing.

Warrants are sometimes more specifically referred to as subscription warrants or stock-purchase warrants.

In some cases, warrants are issued to vendors in lieu of payment or as partial payment. This allows the issuing company to conserve prescious cash and gives the vendor potentially significant upside if the company does well.

If you are an ambitious entrepreneur or an aspiring executive looking to get involved with a startup, please take the time to learn more about Gaebler Ventures.