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perpetual warrant

   Also found in: Financial 0.03 sec.
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Noun1.perpetual warrant - a warrant with no expiration date
stock warrant, stock-purchase warrant, warrant - a type of security issued by a corporation (usually together with a bond or preferred stock) that gives the holder the right to purchase a certain amount of common stock at a stated price; "as a sweetener they offered warrants along with the fixed-income securities"


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This analysis also makes it clear why a perpetual warrant on a currently nondividend-paying stock will not have a price equal to the stock price (as predicted by the [beta] = [alpha] theory): namely, it could only do so if it were believed that the stock would never pay a dividend.
 
 
 
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