Define: Warrant

UK Accounting Glossary

Definition: Warrant


Quick Summary of Warrant


A security that offers the owner the right to subscribe to the ordinary shares of a company at a fixed date, usually for a fixed price. (or) A document that serves as confirmation that goods have been deposited in a public warehouse.




What is the dictionary definition of Warrant?

Dictionary Definition


  1. obsolete A protector or defender.
  2. Authorization or certification; sanction, as given by a superior.
  3. Something that provides assurance or confirmation; a guarantee or proof: a warrant of authenticity; a warrant for success.

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Full Definition of Warrant


  • A share warrant is a security that offers the owner the right to subscribe to the ordinary shares of a company at a fixed date, usually for a fixed price. Warrants are themselves bought and sold on stock exchanges and are the equivalent of stock options. Subscription prices typically exceed the market price, as the purchase of a warrant is a gamble that a company will perform well. Share warrants have proved increasingly popular in recent years, as they can be used by a company without being included in the balance sheet.
  • A document that serves as confirmation that goods have been deposited in a public warehouse. The document specifies specific goods and may be transferred by endorsement. Warrants are frequently used as a form of security against a bank loan.

Warehouse warrants for warehouses attached to a wharf are known as wharfinger’s warrants or dock warrants.


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Warrant FAQ's



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https://payrollheaven.com/define/warrant/
Modern Language Association (MLA):
Warrant. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 19, 2019 https://payrollheaven.com/define/warrant/.
Chicago Manual of Style (CMS):
Warrant. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/warrant/ (accessed: November 19, 2019).
American Psychological Association (APA):
Warrant. PayrollHeaven.com. Retrieved November 19, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/warrant/

Definition Sources


Definitions for Warrant are sourced/syndicated from:


This glossary post was last updated: 5th May 2019.