A warrant in debt is a type of financial instrument that gives the holder the right to purchase a certain number of shares of a company’s stock at a specified price. Warrants are typically issued by companies as a way to raise capital. They are often sold alongside bonds or other debt instruments, and they can provide investors with a way to participate in the potential upside of a company’s stock without having to purchase the stock itself.
Warrants can be an attractive investment for several reasons. First, they can provide investors with the opportunity to purchase shares of a company’s stock at a discount to the market price. Second, warrants can give investors leverage, as they can control a larger number of shares of stock with a smaller investment. Third, warrants can provide investors with a way to hedge their investments against the risk of a decline in the stock market.