SIE practice questionmediumWarrants
A warrant entitles a holder to:
- AVote in proxy elections
- BReceive guaranteed dividends
- CConvert to preferred shares at any time
- DPurchase stock at a fixed price in the future✓ Correct answer
Explanation
Why D — Purchase stock at a fixed price in the future
Warrants give the right to buy stock at a fixed price. They do not guarantee dividends, cannot convert to preferred, and do not grant voting rights.
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