The Exercise of Warrants Creates New Shares Which

question 29

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 that 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:

Bond Of Trust

A foundational relationship built on reliability, integrity, and confidence between individuals or within a group.

Gossip

Informal or idle talk about others, typically involving details that are not confirmed as being true.

Grapevine

An informal communication channel within an organization, where information is spread through personal contacts and conversations rather than through official means.

Power And Influence

The capacity or ability of a person or group to direct or affect the behavior of others or the course of events.