PrivateTechSharesWarrant
Also called: stock warrant, share warrant
In one line
A right issued by the company (often to investors or lenders) to buy shares at a set price for a long period.
In plain English
A warrant is like an option but usually given to investors, partners or lenders rather than employees, often with a multi-year life. Exercising it issues new shares and dilutes others.
If you were explaining it to a 5-year-old
A long-lasting voucher the club gives to a big helper, letting them buy toys at a fixed price for years.
Why it matters when you sell
Outstanding warrants are part of the fully-diluted count, so they affect the share total your ownership is measured against.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.