SIE practice questioneasyWarrants
A warrant is best described as:
- AA certificate for a cash dividend.
- BA bond that pays interest annually.
- CA long-term option to buy stock at a set price.✓ Correct answer
- DA short-term loan to the company.
Explanation
Why C — A long-term option to buy stock at a set price.
Warrants grant the right to purchase stock at a fixed price for an extended period. Bonds, dividends, and loans are unrelated to warrants.
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