Meaning of “covered warrant” in the English Dictionary

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"covered warrant" in Business English

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covered warrantnoun [ C ]

uk us

FINANCE an agreement that allows a person, usually someone who is already a shareholder, to buy or sell an investment that is based on shares, bonds, etc. at a fixed price before a fixed date. Covered warrants are bought and sold through financial institutions that already own the shares, etc. connected with the warrant before they sell them to investors.

(Definition of “covered warrant” from the Cambridge Business English Dictionary © Cambridge University Press)