Stock warrants are certificates extending rights to acquire shares by an investor in an investee.
- May be issued with other securities to make the securities more attractive.
- Issued as evidence of the pre-emptive right.
- Issued as compensation to employees.
- Detachable stock warrants: Issued with other securities. Equity feature and debt feature accounted for separately.
More in Chapter 18 from investor point of view. This chapter is from the investee point of view.