Which of the Following Is True About Warrants

question 99

Multiple Choice

Which of the following is true about warrants?

• A) as the market value of a warrant increases, so does the premium
• B) a rising share price is usually followed by a decrease in the price of the warrant
• C) exercise price is greater than market price ant time of issue
• D) none of the other answers are correct

---

Definitions:

Consolidation

The process of combining multiple accounts or businesses into a single entity, often for strategic, financial, or operational efficiency reasons.

Appraisal Rights

Entitlement of a corporation's minority shareholders to have their shares appraised and to receive compensation at a fair market value in the event of certain corporate actions.

Acquires

The act of obtaining ownership or control over assets, properties, or companies, often through purchase or merger.

Sole Proprietorship

A business structure where the business is owned and operated by a single individual who has personal responsibility for all debts and liabilities.