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HomeRight Arrow TerminologyRight Arrow Warrant

Warrant

A warrant is a financial instrument that grants the holder the right, but not the obligation, to buy or sell a specific underlying asset, such as tools, bonds, commodities, or currencies, at a predetermined price (called the exercise or strike price) within a specified time frame. Warrants are commonly issued by companies, financial institutions, or governments as a way to raise capital or provide investors with additional investment opportunities.

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