The Major Difference Between Convertible Debt and Stock Warrants Is

question 21

Multiple Choice

The major difference between convertible debt and stock warrants is that upon exercise of the warrants

• A) the stock is held by the company for a defined period of time before they are issued to the warrant holder.
• B) the holder has to pay a certain amount of cash to obtain the shares.
• C) the stock involved is restricted and can only be sold by the recipient after a set period of time.
• D) no paid-in capital in excess of par can be a part of the transaction.

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Definitions:

Self-Stimulation Theory

A theory suggesting that behaviors are motivated by the intrinsic pleasure they provide.

Sexual Selection

A mode of natural selection where certain traits become more pronounced in a population because they are attractive to the opposite sex or aid in competitive success among the same sex.

Fecundity

the potential reproductive capacity of an individual or population, often measured by the number of offspring born.

Viability

The capacity of being alive or living successfully, often used in the context of whether a fetus can survive outside the womb or the sustainability of a project or plan.