Who issues warrants?

• A. The issuer of the underlying securities.
• B. The government.
• C. The stock exchange.
• D. The investor.

Answer: (A)

Warrants are created and issued by the company that is issuing the stock. They are a contract the issuer creates to give the holder the right to buy the issuer’s common shares at a set price before expiration. Because the warrant represents new or additional shares, it’s the issuer that supplies them, not the government, a stock exchange, or an investor.