The Exercise of Warrants Creates New Shares Which

question 89

Multiple Choice

The exercise of warrants creates new shares which

• A)increases the total number of shares but does not affect share value.
• B)increases the total number of shares and reduces the individual share value.
• C)does not change the number of shares outstanding, similar to options.
• D)increases share value because cash is paid into the firm at the time of warrant exercise.

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Definitions:

Work

Activities involving mental or physical effort done in order to achieve a purpose or result, typically associated with employment.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including exercise and activities undertaken while working, playing, or performing daily chores.

Mental Activity

The operation of the mind through processes like thinking, learning, memory, perception, and problem-solving.

Goods

Tangible items that are produced, bought, or sold, serving as objects of commerce and economic transactions.