Covered Warrant
Covered warrants are certificates issued by a bank that enable the holder to buy securities or financial instruments at a specified price and time. Covered warrants can be convertible into a wide variety of underlying financial instruments, whereas ordinary warrants are convertible only into the stock of the company that issued them. Covered warrants are only issued by banks and allow the holder to buy or sell the underlying asset whereas ordinary warrants allow the holder only to buy the underlying asset.