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DEFINITION of 'Warrant Coverage'. An agreement between a company and its shareholders whereby the company issues warrants equal to some percentage of the dollar amount of the shareholder's investment. Next Up.
warrant. 1  authorization, sanction, or justification. 2  something that serves to give reliable or formal assurance of something; guarantee, pledge, or security. 3  something considered as having the force of a guarantee or as being positive assurance of a thing: The cavalry and artillery were considered sure warrants of success.