Glossary

W

Warrant

A guarantee entitling the owner to purchase at a specified price a proportionate amount of stock at a specified future date. This "warrant" is then traded as a security, whose price reflects the underlying stock's value.Organizations issue warrants and often use them as a ' ' sweetener '' combined with another safety class to improve the latter's marketability.

Withdrawal Plan

A service provided by mutual funds that allows investors to receive regular intervals of income or principal payments from their account.The facility to redeem mutual fund on a regular basis and have the proceeds sent to the investor directly.