The Exercise of Warrants Creates New Shares Which

question 20

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 which 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.

---

Definitions:

State Legislature

The legislative branch of state government, responsible for making and passing laws within that state.

Nonpartisan Panel

A committee or group that does not show allegiance to any political party and aims to make decisions based on objective criteria rather than party lines.

Gerrymandering

The manipulation of electoral district boundaries for political advantage, generally aimed at creating a partisan tilt.

Legislative District

A specified geographical area represented by a member in a legislative body, determined for the purpose of electing representatives.