Warrants Never Sell for More Than Their Intrinsic Value

question 28

True/False

Warrants never sell for more than their intrinsic value.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Date of Record

The cut-off date set by a company in order to determine which shareholders are eligible to receive a dividend or distribution.

Three-For-One Split

A stock split in which each shareholder receives three new shares for each share they currently own.

Stock Price

The stock price is the cost of a single share of a company's stock, reflecting the market's value and investors' perceptions of the company's future prospects.