Warrants Differ from Options in a Number of Ways

question 43

Multiple Choice

Warrants differ from options in a number of ways.Which of the following statements about warrants and options is false?

• A) When originally issued, the life of a warrant is usually much longer than that of a call option.
• B) Warrants are usually issued by the company on whose stock the warrant is written.
• C) Warrants are often used by companies as sweeteners to make new issues of debt or equity more attractive.
• D) Warrant holders have voting rights while option holders do not.
• E) None of the above (that is, all statements are true)

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Definitions:

Projected Visuals

Visual aids displayed via projection equipment to enhance understanding or retention of spoken or written information.

Monotonous

Describes a lack of variety and interest, often leading to boredom; can refer to sounds, visuals, or tasks that are all too uniform.

Tempo

The speed at which a piece of music is played or the pace of an activity or process.

Pitch

The quality of a sound governed by the rate of vibrations producing it; the highness or lowness of a tone.