#Abefektetőszótára: Opciós utalvány

A warrant is a certificate for purchasing a certain number of securities at a specified price within a specified period of time. Technically, it is a certificate that grants privileges to both the issuing company and warrant's owner.

As a result, the buyer is able to purchase securities at a lower price than the market price, and the company can pay a lower interest rate. At the same time, the owner of a warrant does not become the owner of the shares, but only gets the right to buy them in the specified amount and at the agreed price!

For the document to be legally binding, it must contain the following information:

- Number of shares that the owner can buy under this warrant;
- Warrant validity time or the fact that it is valid indefinitely;
- Cost of executing the warrant.

Depending on the terms of execution, American and European warrants are distinguished:

- American warrants - a deal under this warrant can be made at any time;
- European warrants - the expiration date coincides with the moment of implementation.

Ordinary warrants are issued exclusively for the shares that are to be bought or sold.

Revocable warrants – the issuer can force the warrant's owner to buy a specified number of valuable assets at a previously agreed price.

Put warrant - the owner of the warrant may oblige the issuer to issue and sell a set amount of valuable assets at the price specified in the warrant.

Covered warrant - allows the owner to buy any type of securities.

Index warrant - has its own stock index that replaces the asset.

A pull warrant allows the owner to trade a certain amount of assets regardless of his/her liabilities.

Financial market newcomers sometimes confuse warrants with options. Despite some functional similarities, these two tools are not the same. The advantage of a warrant is the opportunity to earn profit from the difference in the exchange rates of securities: market and specified in the certificate.