{"id":26413,"date":"2026-04-03T19:23:00","date_gmt":"2026-04-03T19:23:00","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=26413"},"modified":"2026-04-03T19:23:12","modified_gmt":"2026-04-03T19:23:12","slug":"what-are-warrants-and-how-do-they-work","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-are-warrants-and-how-do-they-work\/","title":{"rendered":"What Are Warrants and How Do They Work?"},"content":{"rendered":"\n<p>A warrant is an instrument issued by a company that gives the holder the right but not the obligation to buy shares at a fixed price before a specified expiry date. Warrants are not shares themselves, they are an entitlement to buy shares later.<\/p>\n\n\n\n<p>Warrants are typically issued alongside bonds or as part of a preferential allotment.<\/p>\n\n\n\n<ul><li>If the market price rises above the warrant&#8217;s exercise price before expiry, exercising the warrant makes sense. You&#8217;re buying shares below market price.<\/li><li>If the market price stays below the exercise price the warrant lapses without value.<\/li><\/ul>\n\n\n\n<p>As an existing shareholder, warrants issued to others can cause dilution when exercised since new shares are created at that point. The extent of dilution depends on how many warrants are outstanding and whether they get exercised.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2871],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26413"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=26413"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26413\/revisions"}],"predecessor-version":[{"id":26415,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26413\/revisions\/26415"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=26413"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=26413"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=26413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}