Which of the Following Is the Difference Between a Stock

question 44

Multiple Choice

Which of the following is the difference between a stock warrant and a stock option?

• A) A stock warrant can be freely traded, whereas a stock option cannot be traded.
• B) A stock warrant can only be issued to employees, whereas a stock option can be issued to anyone.
• C) A stock warrant authorizes its holder to purchase a stated number of shares at a stated price, whereas a stock option allows its holder to purchase any number of shares at any price.
• D) Shares bought through a stock warrant can be bought back by the company issuing the shares, whereas shares bought through a stock option cannot be bought back.

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Definitions:

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