A certificate that is typically issued along with a bond or preferred stock, entitling the holder to buy a specific amount of securities at a specific price (call warrant), usually above the current market price at the time of issuance, for an extended period, anywhere from a few years to forever. In the event that the price of the security rises higher than the warrant’s exercise price, then the investor can buy the security at the warrant’s exercise price and resell it for a nice profit. Otherwise, the warrant will simply expire or remain unused. Warrants are listed on options exchanges and trade independently of the security with which it was issued.