A firm can raise capital by issuing securities such as convertibles and warrants but a firm has nothing to do with the creation of options to raise capital.

Question

Quizplus · Accepted Answer

Options are derivatives traded between investors in the market, and firms do not issue options to raise capital. Convertibles and warrants, on the other hand, are issued by firms directly as a means to raise funds.

A Firm Can Raise Capital by Issuing Securities Such as Convertibles