what is dividend wareents?

Dividend is the part of profits payable to the owners of the company i.e., Shareholoders.  Some companies issues warranets to its share holders instead of paying dividents in the form of cash in the form of document by mentioning the Warrant Price and other details.

The price mentioned in it is also called exersise prise.  Some times company may not specify the name of the holder.  it can be filled by the holder of the document.

Advantages :  It helps to the issuing company from paying the Tax.

It is easy to transfer from one person to other without any formalities

It helps to increase the share/capital of the company

Generally dividends are paid from out of profits derived by the company to the investors. A dividend warrant is an instrument sent by the company with the amount to be received by the investor.