Warrants Differ from Options in a Number of Ways

question 43

Multiple Choice

Warrants differ from options in a number of ways.Which of the following statements about warrants and options is false?

• A) When originally issued, the life of a warrant is usually much longer than that of a call option.
• B) Warrants are usually issued by the company on whose stock the warrant is written.
• C) Warrants are often used by companies as sweeteners to make new issues of debt or equity more attractive.
• D) Warrant holders have voting rights while option holders do not.
• E) None of the above (that is, all statements are true)

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Definitions:

Coercive Power

Power based on the use of sanctions or punishments to influence others.

Legitimate Power

Power that is based on respect for a person’s position.

Conflict Management Style

The approaches and methods an individual uses to handle disagreements, disputes, or differences in a constructive or destructive manner.

Accommodation

Adjusting one's behavior or responses to suit another person's needs or preferences, often to maintain harmony in relationships.