stock-warrant

Vocabulary Word

Examples in Different Contexts

From an investor opportunities perspective, stock warrants can be an attractive way to speculate on a company’s growth with a lower initial investment compared to buying the stock outright. An investor might state, 'I invest in stock warrants to leverage small market movements for potentially large gains.'

Practice Scenarios

Startup

Scenario:

We need to encourage the early investors to stick around. Maybe we should offer them some sort of long-term incentive?

Response:

I agree, offering stock warrants will give early investors confidence in our long-term potential.

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.