What Are Warrants
A3. A warrant is a security that gives the holder the right, but not the obligation, to purchase one share of Raytheon common stock at an exercise price (or strike price) of $37.50 per share for a period of five years from the date of issuance. Because the holder of warrants does not actually own the underlying shares (unless the holder exercises the warrants), the holder does not receive any dividends on the underlying shares nor has the power to vote them.
