What is the difference between a Covered Warrant and a traditional Warrant?

A traditional Warrant is issued by the company whose shares the warrant is based upon. Covered Warrants are issued by an institution that is completely independent of the company whose shares/investments the Warrant is based upon.

Eg: Traditional Warrants in ABC plc will be issued by ABC plc, whereas Covered Warrants in ABC plc would be issued by an investment bank like Société Générale

- Submitted on 29th Feb 2020

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