An Investor Considering Investment in Warrants as Part of an Overall

question 77

Multiple Choice

An investor considering investment in warrants as part of an overall program,should consider which of the following?

• A) Diversification
• B) Cutting losses short, and letting profits run
• C) A low intrinsic value
• D) Viewing warrant selection as a portion of the total investment process
• E) All of the above

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Definitions:

Growth Stocks

Shares in companies that are expected to grow at an above-average rate compared to other companies in the market.

Dividends

Money disbursed by a firm to its stock owners, often as a share of profits.

Noncumulative Preferred Stock

Type of preferred stock that does not give the holder the right to claim dividends missed in the past.

Preferred Dividends

Regular payments made to preferred shareholders out of the company's profits before any dividends are paid to common shareholders.