The Exercise of Warrants Creates New Shares Which

question 20

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 which 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.