What is a Warrant?
In this discussion of warrants, James touches on the details of warrants and explains Siemens’ 2012 issuance.
Overview
A warrant in the equity-linked market is usually a call option. This is an instrument with a fixed maturity that offers the buyer the chance to pay a fixed price for shares at a premium to the existing share price.
Key learning objectives:
Define a warrant
Explain how a warrant is priced
Discuss how a bond plus warrant package can be traded separately and why it may be desirable.
Summary
Expert
James Eves
Career banker with over 25 years working in investment banking. James has worked in many aspects of banking including equity capital markets, origination, IPOs and hybrid capital.
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