# Naked Warrant

**IRI:** https://folio.openlegalstandard.org/R97tgzvknramX3sTnwyUZLN

## Labels

**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.

## Sub Class Of

- https://folio.openlegalstandard.org/RCiwr86zmjFFCLgof7UXAiU

**Deprecated:** False