The Exercise of Warrants Creates New Shares Which

question 89

Multiple Choice

The exercise of warrants creates new shares which

• A)increases the total number of shares but does not affect share value.
• B)increases the total number of shares and reduces the individual share value.
• C)does not change the number of shares outstanding, similar to options.
• D)increases share value because cash is paid into the firm at the time of warrant exercise.

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Definitions:

Selections

The process of choosing or selecting from a group of alternatives.

Individuals

Refers to the subjects or entities being studied in a statistical or research context.

Mutually Exclusive Events

Two or more events that cannot occur at the same time in any given experiment or real-world situation.

Intersection

The point or set of points where two or more geometric figures, lines, or paths cross each other.