DEFINE SHARE WARRANT. Distinction between a Share Certificate and a Share Warrant

DEFINE SHARE WARRANT Meaning: A share warrant is a bearer document of title to shares and can be issued only by public limited companies and that to against fully paid up shares only. A share warrant cannot be issued by a private company, because the share warrant states that its bearer is entitled to a number of shares mentioned there in. It is a negotiable document and is easily transferable by mere delivery to another person. The holder of the share warrant is entitled to receive dividend as decided by the company. A share warrant is accompanied by attached coupons for the payment of future dividends. There are three parts of a share warrant: (1) The counter foil. (2) Share Warrant proper. (3) The dividend coupons. Conditions for the issue of a share warrant: (1) Only public limited companies: Share warrant can be issued by the public limited companies. It cannot be issued by private companies. (2) Against share certificate of fully paid up shares: A share warrant is only i...