An inducement attached to new securities in distribution giving purchasers a long-term (usually a five- to ten-year) privilege of subscribing usually to one or more shares of common stock (ordinary shares) at a predetermined set price, which is reserved for them by the corporation from its unissued or treasury stock reserve. See Subscription Right. Note: 'At a predetermined set price' is most important because that is the warrant's attraction. If the price of the underlying stock rises over time, the value (intrinsic and market) of the warrant will too. The term 'common' delineates the type of stock, 'ordinary shares' is added as it is what 'common stock' is known as in many countries.