FINANCEanagreementthatallowsaperson, usually someone who is already ashareholder, tobuyorsellaninvestmentthat isbasedonshares,bonds, etc. at afixedpricebefore afixeddate. Coveredwarrantsareboughtandsoldthroughfinancialinstitutionsthat already own theshares, etc.connectedwith thewarrantbefore theysellthem toinvestors.(Definition ofcovered warrantfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofcovered warrant
covered warrantThey are limited liability instruments so there are no further payments or margin calls required to maintain acoveredwarrantposition.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Covered warrants offer a flexible alternative to private investors who seek to gain the leverage benefits of derivatives, but who wish to limit their risk.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.These are also called covered warrants and are settled for cash, e.g. do not involve the company who issues the shares that underlie the warrant.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Covered warrants have an average life of 6 to 12 months, although some have maturities of several years.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.With covered warrants the maximum loss is limited to the price paid for the warrant (ask or offer price) plus any commission or other transaction charges.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.This is because covered warrants, just like options, can be created to allow holders to benefit from either rising prices or falling prices, by having both put and call warrants.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/covered-warrant##
