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Definition

This is a securities contract which gives the holder the right to purchase a specified quantity of a company's shares on or before a specific date. Call warrants are issued by the company itself - and so result in an increase in the company' share capital. Call options also entitle the holder to purchase a specified number of shares by a certain date, but they can be issued by anyone who holds the underlying shares. Warrants also tend to have a longer duration than options contracts.

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