A warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price until the expiry date. Similar to an option, it gives the holder the right, but not the obligation, to buy an underlying security at a certain price, quantity, and future time. There are a variety of warrants such as traditional, naked, wedded, and covered. Warrants do not pay dividends or come with voting rights. Investors are attracted to warrants as a means of leveraging their positions in security, hedging against downside or exploiting arbitrage opportunities.