Warrants are sometimes issued
I.with private placement bonds;
II.to investment bankers as compensation;
III.to creditors in the event of bankruptcy;
IV.to common stockholders
A)I, II, III, and IV
B)I and II only
C)I, II, and III only
D)II and III only

Question

Quizplus · Accepted Answer

Warrants can be issued in various contexts: with private placement bonds to make the bonds more attractive, to investment bankers as a form of compensation for their services, to creditors in a bankruptcy scenario as a potential means to recover value, and to common stockholders, often as a way to encourage investment or loyalty.

Warrants Are Sometimes Issued