Definition of Ex-Warrant
What is Ex-Warrant
Ex-warrant is a term used to describe a situation in the stock market where a stock is trading without the right to receive warrants. A warrant is a financial instrument that gives the holder the right, but not the obligation, to buy a certain number of shares of the underlying stock at a specific price and within a specific timeframe.
When a stock is trading ex-warrant, it means that the right to receive warrants has been separated from the underlying stock and the buyer of the stock does not have the right to receive the warrants. This will typically happen when a company issues new warrants and sets a record date, after which anyone who buys the stock will not be entitled to receive the warrants. In financial publications, the abbreviation xw will appear next to a published stock price to indicate that the stock is ex-warrant.
In practical terms, buying a stock ex-warrant means that you are only buying the underlying stock, without the additional potential value that the warrants might provide. Conversely, selling a stock ex-warrant means that you are selling the stock without the warrants attached.
GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts
The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.
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