# Covered Warrant

**IRI:** https://folio.openlegalstandard.org/R98POOtFBXqIJoQNbeL7SzR

## Labels

**Preferred Label:** Third-Party Backed Warrant

**Alternative Labels:**

- Fully Backed Warrant
- Fully Collateralized Warrant
- Secured Warrant
- Third-Party Covered Warrant

## Definition

A Covered 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 covered warrant holds a sufficient quantity of the underlying securities to cover all the warrants if they are exercised, providing a level of security to the warrant holders.

## Sub Class Of

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

**Deprecated:** False