a legal document, issued by a company to a member shareholder, declaring that the bearer of the document has the right to a stated number of fully-paid shares in the company. The name of the member to whom the warrant is issued is not mentioned. The document is a negotaible instrument.
[...] The owner of a warrant has the right to buy a new share in a particular company at a pre-agreed price at a pre-specified date in the future. If the pre-agreed price is attractive when the right-to-buy date comes round, the warrant holder will buy. But in doing so he or she gives new money to the investment company which increases the number of shares in issue and which can dilute value in the same way a rights issue would do. [...]