Because a Warrant Is Dependent on the Market Movement of an Underlying

question 105

True/False

Because a warrant is dependent on the market movement of an underlying stock, it is highly speculative in nature.

---

Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for financing short-term liabilities, with maturities ranging from a few days to 270 days.

TSX

The Toronto Stock Exchange, one of the largest stock exchanges in the world, based in Canada.

DAX

A blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.

FTSE

The Financial Times Stock Exchange (FTSE) is a series of indices that represent the performance of stocks listed on the London Stock Exchange.