Asked by Colby Hastings on Jul 03, 2024
Verified
Warrants can be a source of cash for a firm.
Warrants
Securities that give the holder the right, but not the obligation, to buy a company's stock at a specific price before a certain date.
- Understand the risks and rewards associated with different investment vehicles like ESOs, convertible bonds, and warrants.
Verified Answer
LL
Lesia LysneJul 06, 2024
Final Answer :
True
Explanation :
Warrants give the holder the right to buy the company's stock at a specific price, and when exercised, the company receives cash as the exercise price is paid directly to it.
Learning Objectives
- Understand the risks and rewards associated with different investment vehicles like ESOs, convertible bonds, and warrants.