1. General: (1) Formal and explicit approval. (2) Document (instrument) that confers authority or justifies an act that is otherwise neither permissible nor legal.
2. Law: Legal authorization (writ) issued by a court to (1) search a place and seize specified items if found there (called search warrant), or (2) arrest or detain specified person or persons (called arrest warrant). Although no hearing is required for issuing a warrant, and no prior notice need be given to the party against whom it operates, the court must be provided with reasonable cause (usually through an affidavit) to justify the request for its issuance.
3. Securities trading: (1) Long-term certificate issued by a firm giving the holder the right to purchase its securities at a stipulated price (exercise price) in the future. Warrants are negotiable instruments that usually serve to enhance the marketability of corporate bonds or preferred stock (preference shares). They are similar to call-options but are issued by firms and not by futures exchanges, and have much longer time spans. Also called subscription warrant. (2) Alternative term for coupon.
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