Explain Equity Warrants. Call warrants, Put warrants

Explain Equity Warrants.

Equity warrants are the kind of warrants which can be put or called. It is like an option which gives the holder to buy the security related to its option at a certain price, quantity and time. It is issued by the company. The two warrants which come under this are as follows:-

1) Call warrants :- it gives the rights to the holder to buy the securities which are related to their warrants or the shares which are specified in number.

2) Put warrants:- it gives the rights to the holder to sell back to the issuer at a specified price on or before the date which has been stated while purchasing.