Warrant Coverage

Warrant coverage is an agreement for a company's shareholders, making them eligible to buy shares to a percentage of their original investment value. It is an assurance given to one or more shareholders that they'll be allowed to increase their holdings when the company's value goes up. It is a standard mode of payment during an acquisition or can be given as an incentive to key employees. It acts as a guarantee for shareholders allowing them to buy more at a stipulated price.