warrant

noun

war·rant | \ ˈwȯr-ənt

, ˈwär-\

Definition of warrant

(Entry 1 of 2)

1a(1) : sanction, authorization also : evidence for or token of authorization

(2) : guarantee, security

b(1) : ground, justification

(2) : confirmation, proof

2a : a commission or document giving authority to do something especially : a writing that authorizes a person to pay or deliver to another and the other to receive money or other consideration

b : a precept or writ issued by a competent magistrate authorizing an officer to make an arrest, a seizure, or a search or to do other acts incident to the administration of justice

c : an official certificate of appointment issued to an officer of lower rank than a commissioned officer

d(1) : a short-term obligation of a governmental body (such as a municipality) issued in anticipation of revenue

(2) : an instrument issued by a corporation giving to the holder the right to purchase the stock of the corporation at a stated price either prior to a stipulated date or at any future time

warrant

verb

warranted; warranting; warrants

Definition of warrant (Entry 2 of 2)

transitive verb

1a : to declare or maintain with certainty : be sure that I'll warrant he'll be here by noon

b : to assure (a person) of the truth of what is said

2a : to guarantee to a person good title to and undisturbed possession of (something, such as an estate)

b : to provide a guarantee of the security of (something, such as title to property sold) usually by an express covenant in the deed of conveyance

c : to guarantee to be as represented

d : to guarantee (something, such as goods sold) especially in respect of the quality or quantity specified

3 : to guarantee security or immunity to : secure I'll warrant him from drowning— William Shakespeare

4 : to give warrant or sanction to : authorize the law warrants this procedure

5a : to give proof of the authenticity or truth of

b : to give assurance of the nature of or for the undertaking of : guarantee

6 : to serve as or give adequate ground or reason for promising enough to warrant further consideration

Other Words from warrant Synonyms & Antonyms More Example Sentences Learn More about warrant

Keep scrolling for more

Examples of warrant in a Sentence

Noun

The police had a warrant for his arrest. There was no warrant for such behavior.

Verb

The writing was poor, but it hardly warrants that kind of insulting criticism. The punishment he received was not warranted.

Recent Examples on the Web: Noun

An arrest warrant for Loughlin was delivered on Tuesday, while Hoffman was arrested at her home. — Jenn M. Jackson, Teen Vogue, "Access to Education for Black Children Proves Difficult for Their Parents, Creating a Disadvantage," 13 Mar. 2019 Washington’s attorney general, Bob Ferguson, told Ars in a statement this week that his office is not clear how Wilson’s arrest warrant affects State of Washington v. Department of State et al. — Nathan Mattise And Cyrus Farivar, Ars Technica, "Post-Cody Wilson’s arrest, few know what’s up with his company or legal efforts," 22 Sep. 2018 In November, Ressa and Rappler were charged with tax fraud, and a warrant was subsequently issued for Ressa’s arrest. — Emily Stewart, Vox, "Time’s 2018 Person of the Year is Jamal Khashoggi and other “Guardians” of the truth," 11 Dec. 2018 Police arrested Javaris Bell, 28, who also had an active warrant out for his arrest. — Raisa Habersham, ajc, "Teens among 11 arrested during illegal ATV, dirt bike riding sting on Atlanta roads," 10 July 2018 Both had warrants out for their arrest and were taken into custody, Metro Video reported. — Samantha Ketterer, Houston Chronicle, "Houston police catch several people in two unrelated stops," 25 June 2018 Another, who had warrants out for his arrest, was located with the use of the troopers' helicopter. — Annie Zak, Anchorage Daily News, "Anchorage police, other agencies made dozens of arrests in joint operation this week," 22 June 2018 The application for the warrant was approved high in the Justice Department. — Hope Yen, The Seattle Times, "AP fact check: Trump isn’t holed up nonstop at White House," 14 Jan. 2019 Detectives were called to his hotel room in Orange County in Florida on August 16 with the warrant for his arrest, according to BuzzFeed News. — Bartie Scott, Teen Vogue, "Ian Rylett, of YouTube's SevenAwesomeKids Series, Was Arrested for Allegedly Molesting a Teen," 24 Sep. 2018

Recent Examples on the Web: Verb

Police are awaiting the results of toxicology and other lab reports before deciding if further action is warranted. — Paul Newberry, The Seattle Times, "Police: Late Georgia Tech player collapsed in dance routine," 30 Mar. 2019 Judge Chhabria said that while a bifurcation order in court trials is unusual and should be granted with caution, it was warranted in this case. — Donato Paolo Mancini, WSJ, "Bayer Shares Jump After Monsanto Weedkillers Court Ruling," 4 Jan. 2019 The commission has agreed to study the petition and produce a report on the site before deciding whether landmark status is warranted. — Jamie Halper, BostonGlobe.com, "Outside a former Roxbury church, a wrecking ball looms — and neighbors wait," 21 June 2018 The case has divided the Emanuel administration, with the Civilian Office of Police Accountability ruling the shooting unjustified and police Superintendent Eddie Johnson determining it was warranted. — Dan Hinkel, chicagotribune.com, "Trial opens in 2015 police shooting in which bat-wielding teen and bystander were killed," 18 June 2018 Nor have other civil aviation authorities provided data to us that would warrant action. — Sam Blum, Popular Mechanics, "Pilot of Doomed Ethiopian Airlines Flight Reported Control Problems Shortly After Takeoff," 13 Mar. 2019 Royal wives are usually awarded with the Royal Victorian Order, and can later add as many orders as their service to the family may warrant, People reports. — Erica Gonzales, Harper's BAZAAR, "Kate Middleton Just Received an Extremely Important Honor from the Queen," 24 Oct. 2018 The upgrade from the previous generation may not be warranted since starting prices are $399 and $499, respectively. — Krysia Lenzo, Fox News, "Apple Watch review roundup: The hype is real for the best smartwatch on the market," 19 Sep. 2018 Any burn on a sensitive area, like your face or genitals, could warrant professional attention. — Macaela Mackenzie, Allure, "A Visual Guide to Identifying First-, Second- and Third-Degree Burns," 6 Aug. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'warrant.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

History and Etymology for warrant

Noun

Middle English waraunt protector, warrant, from Anglo-French warant, garant, of Germanic origin; akin to Old High German werēnto guarantor, werēn to warrant; akin to Old High German wāra trust, care — more at very entry 2

Verb

Middle English, waranten to act as protector, guarantee, from Anglo-French warentir, garantir, from warant

Keep scrolling for more

Learn More about warrant

Dictionary Entries near warrant

Statistics for warrant

Last Updated

24 May 2019

Look-up Popularity

Time Traveler for warrant

The first known use of warrant was in the 14th century

See more words from the same century

Keep scrolling for more

More Definitions for warrant

warrant

noun

Financial Definition of warrant

What It Is

Warrants are securities that give the holder the right, but not the obligation, to buy a certain number of securities (usually the issuer's common stock) at a certain price before a certain time. Warrants are not the same as call options or stock purchase rights.

How It Works

Occasionally, companies offer warrants for direct sale or give them to employees as incentive, but the vast majority of warrants are "attached" to newly issued bonds or preferred stock.

For example, if Company XYZ issues bonds with warrants attached, each bondholder might get a $1,000 face-value bond and the right to purchase 100 shares of Company XYZ stock at $20 per share over the next five years. Warrants usually permit the holder to purchase common stock of the issuer, but sometimes they allow the purchaser to buy the stock or bonds of another entity (such as a subsidiary or even a third party).

The price at which a warrant holder can purchase the underlying securities is called the exercise price or strike price. The exercise price is usually higher than the market price of the stock at the time of the warrant's issuance. In our example, the exercise price is $20, which is 15% higher than what Company XYZ stock was trading at when the bonds were issued. The warrant's exercise price often rises according to a schedule as the bond matures. This schedule is set forth in the bond indenture.

One important characteristic of warrants is that they are often detachable. That is, if an investor holds a bond with attached warrants, he or she can sell the warrants and keep the bond. Warrants are traded on the major exchanges. In some cases, where warrants have been issued with preferred stock, stockholders may not receive a dividend as long as they hold the warrant as well. Thus, it is sometimes advantageous to detach and sell a warrant as soon as possible so the investor can earn dividends.

If the price of the stock is above the exercise price of the warrant, the warrant must have what is known as a minimum value. For example, consider the warrants to purchase 100 shares of Company XYZ for $20 per share anytime in the next five years. If Company XYZ shares rose to $40 during that time, the warrant holder could purchase the shares for $20 each, and immediately sell them for $40 on the open market, pocketing a profit of ($40 - $20) x 100 shares = $2,000. Thus, the minimum value of each warrant is $20.

It is important to note, however, that if the warrants still had a long time before they expired, investors might speculate that the price of Company XYZ stock could go even higher than $100 per share. This speculation, accompanied by the extra time for the stock to rise further, is why a warrant with a minimum value of $20 could easily trade above $20. But as the warrant gets closer to expiring (and the chances of the stock price rising in time to further increase profits get smaller), that premium would shrink until it equaled the minimum value of the warrant (which could be $0 if the stock price falls to below $20).

Why It Matters

Warrants are not the same as call options. Call options are not detachable and they often have a shorter shelf life than warrants do (usually less than a year, versus five or more for warrants). They are also not the same as convertible securities, where the holder uses the principal of one security to purchase another security (usually a bond issuer's stock). For example, if the Company XYZ bond were a convertible bond, the holder could trade the bond's $1,000 par value for a number of Company XYZ shares. But if the Company XYZ bond has a warrant attached, the investor must come up with additional money to purchase the shares at the exercise price (in this case 100 shares x $20 per share, or $2,000).

Warrants are also not the same as stock purchase rights. The exercise price of a stock purchase right is usually below the underlying security's market price at the time of issuance, whereas warrant exercise prices are typically 15% above market price at the time of issuance. Also, companies often issue stock purchase rights only to existing shareholders, and they also have very short lives--generally two to four weeks.

Securities with attached warrants allow their holder to participate in the price appreciation of the underlying security (Company XYZ common stock, in our example). This is because the higher the minimum value of the attached warrant, the higher the value of the bond or preferred shares. For example, the price of a Company XYZ bond with a warrant attached tends to rise as the price of Company XYZ common stock approaches the exercise price (similar to a call option).

This opportunity to participate in the upside of another security (albeit usually with the same company) gives investors a little diversification and thus is a way to mitigate risk. As a result, companies often issue bonds and preferred stock with warrants attached as a way to enhance the demand and marketability of the offering. This in turn lowers the cost of raising capital for the issuer.

Source: Investing Answers

warrant

noun

English Language Learners Definition of warrant

(Entry 1 of 2)

law : a document issued by a court that gives the police the power to do something

formal : a reason for thinking, deciding, or doing something

warrant

verb

English Language Learners Definition of warrant (Entry 2 of 2)

: to require or deserve (something)

: to make a legal promise that a statement is true

: to give a guarantee or warranty for (a product)

See the full definition for warrant in the English Language Learners Dictionary

warrant

noun

war·rant | \ ˈwȯr-ənt

Kids Definition of warrant

(Entry 1 of 2)

1 : a reason or cause for an opinion or action There is no warrant for such behavior.

2 : a document giving legal power “Hold that man,” … “I have a warrant for his arrest.”— Richard and Florence Atwater, Mr. Popper's Penguins

warrant

verb

warranted; warranting

Kids Definition of warrant (Entry 2 of 2)

1 : to be sure of or that I'll warrant they know the answer.

2 : guarantee entry 2 sense 1 The toaster is warranted for 90 days.

3 : to call for : justify The report warrants careful study.

Keep scrolling for more

warrant

noun

war·rant | \ ˈwȯr-ənt, ˈwär-

Legal Definition of warrant

(Entry 1 of 2)

1 : warranty sense 2 an implied warrant of fitness

2 : a commission or document giving authority to do something: as

a : an order from one person (as an official) to another to pay public funds to a designated person

b : a writ issued especially by a judicial official (as a magistrate) authorizing an officer (as a sheriff) to perform a specified act required for the administration of justice a warrant of arrest by warrant of commitment

— administrative warrant

: a warrant (as for an administrative search) issued by a judge upon application of an administrative agency

— anticipatory search warrant

: a search warrant that is issued on the basis of an affidavit showing probable cause that there will be certain evidence at a specific location at a future time

— called also anticipatory warrant

— arrest warrant

: a warrant issued to a law enforcement officer ordering the officer to arrest and bring the person named in the warrant before the court or a magistrate

Note: A criminal arrest warrant must be issued based upon probable cause. Not all arrests require an arrest warrant.

— bench warrant

: a warrant issued by a judge for the arrest of a person who is in contempt of court or indicted

— death warrant

: a warrant issued to a warden or other prison official to carry out a sentence of death

— dispossessory warrant \ ˌdis-pə-ˈze-sə-rē- \

: a warrant issued to evict someone (as a lessee) from real property —used especially in Georgia

— distress warrant

: a warrant ordering the distress of property and specifying which items of property are to be distrained

— extradition warrant

: a warrant for the extradition of a fugitive specifically : rendition warrant in this entry

— fugitive warrant

: an arrest warrant issued in one jurisdiction for someone who is a fugitive from another jurisdiction

— called also fugitive from justice warrant

— general warrant

: a warrant that is unconstitutional because it fails to state with sufficient particularity the place or person to be searched or things to be seized

— material witness warrant

: a warrant issued for the arrest of a material witness to prevent the witness from fleeing without giving testimony

— no-knock search warrant

: a search warrant allowing law enforcement officers to enter premises without prior announcement in order to prevent destruction of evidence (as illegal drugs) or harm to the officers — compare exigent circumstances

— rendition warrant

: a warrant issued by an official (as a governor) in one jurisdiction (as a state) for the extradition of a fugitive in that jurisdiction to another that is requesting the extradition

— search warrant

: a warrant authorizing law enforcement officers to conduct a search of a place (as a house or vehicle) or person and usually also to seize evidence

— called also search and seizure warrant

Note: The Fourth Amendment to the U.S. Constitution requires that a search warrant for a criminal investigation be issued only upon a showing of probable cause, as established usually by a sworn affidavit. The search warrant has to specify the premises and persons to be searched as well as what is being searched for. Not all searches require a search warrant. Warrantless searches are permitted when they are of a kind that the courts have found to be reasonable (as by being limited) or when they are prompted by a level of suspicion or belief (as reasonable suspicion or probable cause) that is consistent with the level of intrusion of the search. Some searches have been found to be so intrusive that a court hearing is required before the search is permitted.

3a : a short-term obligation of a governmental body (as a municipality) issued in anticipation of revenue

b : an instrument issued by a corporation giving to the holder the right to purchase the capital stock of the corporation at a stated price either prior to a stipulated date or at any future time stock warrant — compare subscription

warrant

transitive verb

Legal Definition of warrant (Entry 2 of 2)

1 : to guarantee especially by giving assurances that make one liable or responsible: as

a : to give a warranty (as of title) to

b : to protect or assure by warranty the warranted goods an assignor is not liable for defaults of the obligor and does not warrant his solvency — Restatement (Second) of Contracts

c : to state as a warranty : guarantee to be as represented the seller warrants that the car is without defects expressly warranted “prior endorsements guaranteed”— J. J. White and R. S. Summers

2a : to authorize by a warrant a warranted search

b : to serve as or give adequate reason or authorization for warranted the awarding of attorney's fees was not warranted by the facts

3 : to give proof of the authenticity or truth of a formally warranted statement

History and Etymology for warrant

Noun

Anglo-French warant garant protector, guarantor, authority, authorization, of Germanic origin

Transitive verb

Anglo-French warentir garantir, from garant protector, guarantor

Keep scrolling for more