SIE practice questionmediumWarrants
Which is TRUE about warrants compared to rights?
- AWarrants are issued to common shareholders only.
- BRights are issued above current market price.
- CWarrants typically have longer maturities than rights.✓ Correct answer
- DRights are not transferable.
Explanation
Why C — Warrants typically have longer maturities than rights.
Warrants last years, while rights are short-term. Rights are usually below market, both can be transferable, and warrant recipients vary.
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