FOLIO Ontology

Naked Warrant

IRI:
https://folio.openlegalstandard.org/R97tgzvknramX3sTnwyUZLN
Preferred Label Third-Party Issued Warrant
Alternative Labels
Third-Party Warrant Uncovered Warrant

Definition

A Naked Warrant is a financial instrument issued by a third party that is not the issuer of the underlying securities to which the warrant refers. The issuer of the naked warrant does not hold a sufficient quantity of the underlying securities to cover all the warrants if they are exercised, which differentiates it from a traditional warrant.

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