stock-warrant

Vocabulary Word

Examples in Different Contexts

For corporate financing, companies might issue stock warrants to attract investors by providing an incentive to invest in the company’s future. A CFO might explain, 'Issuing warrants along with debt securities can make our financial instruments more appealing to investors, as they offer additional leverage.'

Practice Scenarios

Accounting

Scenario:

Let's recalculate the earnings per share taking into consideration the financial instruments that could potentially dilute the shares.

Response:

Absolutely, we need to factor in the possible exercising of stock warrants when calculating the EPS.

Tech

Scenario:

We're considering various ways to maximize our next fundraise. A financial incentive might make our proposition more appealing.

Response:

Great idea, stock warrants might make our offering attractive and provide potential upside to the investors.