Which of the Following Is not a Characteristic of Warrants

question 22

Multiple Choice

Which of the following is not a characteristic of warrants?

• A) They are sweeteners added to other security issues.
• B) After the initial sale, warrants are detachable.
• C) They pay no dividends.
• D) They provide no voting rights.
• E) No dilution protection is offered in the event of stock dividends or stock splits.

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Definitions:

Cumulative Voting

A voting system used by corporations allowing shareholders to allocate their entire vote in any proportion to one or more candidates for the board of directors.

EPS Growth Rate

A measure of the annualized rate of increase in earnings per share of a company over time.

Rate of Return

The rate of return is the gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.