Warrants allow lenders to buy equity at a specified price.

Name: Warrants allow lenders to buy equity at a specified price.
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Question

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Warrants are financial instruments that give the holder the right, but not the obligation, to buy a stock or asset at a predetermined price within a specified time frame. In the case of warrants issued by lenders, they have the right to purchase equity in the company at a pre-determined price, usually at a discount to the market price at the time of issuance.

Warrants Allow Lenders to Buy Equity at a Specified Price