Which of the Following Is True About Warrants

question 70

Multiple Choice

Which of the following is true about warrants?

• A) At high stock prices, the warrant premium is high.
• B) A rising stock price is usually followed by an increase in the price of the warrant.
• C) Warrants usually allow the purchase of common and preferred stock.
• D) All of these options are true.

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Definitions:

Tax-exempt Saving

An investment account or product that offers tax benefits, such as no taxation on the interest or profits earned.

529 Plan

A tax-advantaged savings plan designed to encourage saving for future education costs, including tuition, fees, and room and board.

Annual Return

The percentage change in an investment's value over a one-year period, taking into account both capital gains and dividend or interest earnings.

Roth IRA

A type of individual retirement account where contributions are made with after-tax dollars, but withdrawals during retirement are tax-free.