A security entitling the holder to buy a proportionate amount of stock at some specified future date at a specified price. This "warrant'' is then traded as a security, the price of which reflects the value of the underlying stock. Warrants are issued by corporations and often used as a ``sweetener'' bundled with another class of security to enhance the marketability of the latter.
The facility to periodically redeem mutual fund and have proceeds mailed directly to the investor.