___________allow the holder to purchase a certain number of shares of the firm's common stock at a specified price over a certain period of time and are occasionally part of a debt agreement.

Question

Quizplus · Accepted Answer

Stock-purchase warrants allow the holder to purchase a certain number of shares of the firm's common stock at a specified price over a certain period of time. Debentures are a type of debt instrument. Puts and calls are options contracts that give the holder the right to sell (put) or buy (call) a stock at a specified price. Rights are another type of option contract that give the holder the right to purchase additional shares of stock at a discounted price. However, the question specifically mentions that the option is part of a debt agreement, which points to stock-purchase warrants as the correct answer.

___________Allow the Holder to Purchase a Certain Number of Shares