In Comparing Warrants and Rights, They

question 39

Multiple Choice

In comparing warrants and rights, they:

• A)are similar in that the company can discriminate as to who buys new company stock.
• B)are similar in that they allow the purchase of existing stock only
• C)are different in that both allow the firm to receive additional funds at the time they are exercised.
• D)are different in that rights allow the holder of the right to vote in corporate elections based on the number of shares the right can purchase.

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