Prepaid Warrant

March 19, 2016 by Alexa Cleek -

A prepaid warrant is a warrant issued by an issuer entitling the holder to exercise into a specified number of different securities, for no additional financial consideration, during a specified time period.⁹

Performance Based Vesting

Alexa Cleek

Definitioner

Prepaid Warrant

A prepaid warrant is a warrant issued by an issuer entitling the holder to exercise into a specified number of different securities, for no additional financial consideration, during a specified time period.⁹

Warrant

A type of security that entitles the holder to buy a proportionate amount of common stock or preferred stock at a specified price for a period of years. Warrants are usually issued together with a loan, a bond, or preferred stock and act as sweeteners, to enhance the marketability of the accompanying securities. They are also known as stock-purchase warrants and subscription warrants.³

Securities

Includes all types of equity and debt instruments and rights in and to them.³

Issuer

A company raising funds through a "Portal" or "Broker-Dealer" via securities-based crowdfunding, and issuing a security (equity or debt) to each investor in return for his or her funds.¹
Refers to the organization issuing or proposing to issue a security.³