Practical Law Glossary Item 5-382-3907 (Approx. 2 pages)
Glossary
Warrant
A right, but not an obligation, to acquire securities (typically common equity securities) from the issuer at a set price (or a price to be calculated in accordance with a set formula) and during a specified period. Warrants are often issued in connection with a private equity leveraged buyout, minority investment, or mezzanine financing and are typically issued with debt securities or preferred stock as an inducement (or equity kicker) for potential investors.