A warrant is a security that allows the warrant owner to buy an underlying stock or bond at a fixed price until a certain date.

A warrant is the option to buy a predetermined number of shares at a  given price. Warrants can be detachable or non-detachable.  A detachable warrant may be sold separately from the bond it is associated with.  A nondetachable warrant is sold with its bond to be exercised by the bond owner simultaneously with the convertible bond.

Warrants are often attached to preferred stock or bonds as an enticement making those securities more attractive to purchase, allowing the issuer to pay a lower dividend or interest rate.  Warrants can also attract more investors.  Warrants can be used in private stock sales. Warrants are often detachable, and can be sold independently of the stock or bond. Warrants have similar features to options.