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 Warrants |
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A certificate usually issued
along with a bond or preferred stock, entitling
the holder to buy a specific amount of securities
at a specific price, usually above the current market
price at the time of issuance, for an extended period,
anywhere from a few years to forever. In the case
that the price of the security rises to above that
of the warrant's exercise price, then the investor
can buy the security at the warrant's exercise price
and resell it for a profit. Otherwise, the warrant
will simply expire or remain unused. The main difference
between warrants and call options is that warrants
are issued and guaranteed by the company, whereas
options are exchange instruments and not issued
by the company. Also, the lifetime of a warrant
is often measured in years, while the lifetime of
a typical option is measured in months. Warrants
are often included in a new debt issue as a "sweetener"
to entice investors. |
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Whole
Life Insurance |
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Permanent insurance which provides,
at minimum, a level death benefit upon the insured's death,
or a cash endowment upon policy maturity that is equal
to the death benefit. In addition, these policies accumulate
cash values on a tax-deferred basis. A plan of insurance
for the whole of life. It includes straight life on which
premiums are payable until death.
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Withholding
Tax |
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Tax deducted from dividends which
are paid to investors who are non-residents. Tax can often
be
reclaimed if there is a double taxation agreement with
the inves tor’s country.
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