WARRANTS

A municipal warrant is a debt obligation that does not require voter approval. It could be secured either by a G.O. or revenue pledge. The terminology is peculiar to Alabama due to an a antiquated state law requiring voter approval of all bonds. See also General Obligation and Revenue Bond.

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Similar to long term options, they give the holder the right to convert the warrant at a set price, into a set number of shares of the associated stock. They are often issued as bonuses along with newly issued common stock or bonds, and in combination these are called units. When sold ex-warrant, it is too late to get the warrant that was attached to the stock.