Warrant

A long term security which is similar to an option. A stock warrant is a certificate that usually allows an investor to purchase one share of stock at a fixed price for a certain period of time. The abbreviation .wt is is added to the common stock symbol.

Leverage

The leverage of a warrant is a measure of how much you can increase your exposure to a share if you bought warrants instead of making a direct investment. It is calculated dividing the current share price by the current price of the warrant.

Time Value

The time value is the difference between the current warrant price and its intrinsic value. The time value is to be interpreted as the consideration paid for the advantage that the warrant buyer has over the direct investor. It is based on liquidity advantage as the warrant buyer pays less than the buyer of the underlying or common.

Underlying (underlying asset)

The financial instrument underlying the warrant. eg a common share. Its is also called the underlying asset.