Distinguish between stock warrants and stock options.
What will be an ideal response?
Stock warrants are rights to purchase a specified number of shares of a corporation's capital stock at a stated price and within a stated time period. These rights are granted by a corporation to bondholders or potential stockholders as a feature to make the securities more attractive, or they may be granted to existing stockholders as an incentive for maintaining their relative level of ownership in the corporation.
Stock options are also rights to purchase a specified number of shares of a corporation's capital stock at a stated price and within a stated time period. However, stock options, unlike stock warrants, are granted to existing employees of the corporation as compensation for their services.
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In an auction, a bidder is an offeree
Indicate whether the statement is true or false
Which of the following would be an example of the "transactions motive" for a firm holding cash
balances? A) take advantage of an anticipated decline in the price of raw materials B) purchase of inventory C) anticipating a downturn in the economy D) investing "excess cash balances"
One of the reasons companies use interest rate swaps is because they pursue a target debt structure that combines maturity, currency of composition, and fixed/floating pricing
Indicate whether the statement is true or false.
Why would "groom decides he doesn't want to get married" not be covered by a typical wedding insurance policy?
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