Warrant

A warrant is a security which is based on stocks. It gives its holder the right to purchase the underlying stock at a predetermined rice within a predetermined time frame. However, the holder is not obliged to purchase the underlying assets.

In exchange for the guarantee of being able to purchase underlying assets, investors pay a markup on the actual going price of underlying assets. Typically, warrants are issued directly by companies or financial services providers, rather than by stock exchanges. Because warrants are long-term contracts, they are often traded at stock exchanges or over the counter (OTC).

More on this topic:
ETFs explained
Swiss online broker comparison tool

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 70 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.