Which of the Following Is the Holder of a Warrant

question 48

Multiple Choice

Which of the following is the holder of a warrant allowed to do prior to a specified date?

• A)convert debt into a specified number of shares.
• B)sell common shares at a predetermined price.
• C)exchange stock for bonds at a specified price.
• D)purchase shares at a predetermined price.

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Definitions:

Valid Consideration

Something of legally sufficient value that is exchanged between parties in a contract, forming the basis for the agreement.

Contract

A legally-binding agreement between two or more parties that outlines obligations and rights of the parties.

Holder in Due Course

A party possessing a negotiable instrument (like a check) in good faith and for value, with certain protections against claims and defenses.

Payable to Cash

A term indicating that a check or other document is made out to "Cash" instead of a specific payee, allowing anyone who holds it to cash it.