Warrants Launched

A warrant, in its general sense, is a security that entitles the holder to purchase or sell a specific number of shares from a company at a particular price, the so-called exercise price, within a certain term according to the terms of the issue. Warrants are often attached to bonds or stocks as sweeteners, issued by companies when they make a new issue of shares, in order to attract potential buyers. As they comprise only a fraction of the price of the share itself, investors may potentially benefit from the growth of a much larger shareholding.

Warrants provide investment alternatives to investors and increase market depth and width and the capital market's contribution to the country's economy. As with every capital market instrument, warrants also have advantages and disadvantages.