Warrants are similar to options but there are few key differences. Warrants are derivatives that give the right but not the obligation to the holder to buy or sell security before expiration date. The price at which underlying security can be bought is called strike price and should be bought before an expiration date. Like option there are call warrants that give holder the right to buy a security and pit warrants that give the right to sell security. Underlying securities are commonly equity but they can also be currencies, commodities and other financial instruments. Warrants are issued directly by the company and not the third party. Investors can write options but they can't write warrants. Finding and trading warrants is also more difficult because they usually trade on over-the-counter market and not stock exchanges. If they however trade on exchange they have a thicker of an underlying stock but with letter W attached at the end of the ticker. Warrants are dilutive...
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