Subscription Warrant

Subscription Warrant This is a type of certificate that is given to the investor when a bond or preferred stock is purchased and it gives the investor the right to purchase a given amount of additional securities for a predetermined price. The predetermined price is usually above the current market value, but this warrant can last anywhere from a few years to a lifetime, so it could end up being viable in the future. If the price of the security ever rises above the rates that have been given to the investor, the investor is still able to make the purchase at the discounted rate, as long as the subscription has not yet expired.