// definition
Warrant
Share subscription warrant
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Short definition
A security giving its holder the right to obtain shares under a specified exercise price, term and other contractual conditions. Shares underlying an unexercised warrant must be distinguished from shares already held. Exercise may lead to issuance and dilution; registering shares for resale records neither exercise nor an actual sale.
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Knowledge map
Intuition
A warrant gives access to shares under its terms; registration does not record its exercise.
Related analyses
Primary sources
- Unusual Machines / SEC, December 5, 2024 prospectusWarrant terms and the distinction between registered shares and completed transactions.