Which of the following instruments gives the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time?
A)Warrant
B)Treasury stock
C)Subordinated debt
D)Short-term bank loan

Question

Quizplus · Accepted Answer

A warrant is an instrument that gives the owner the right to purchase securities directly from the issuing firm at a fixed price during a specified period of time. Treasury stock refers to the company's own stock that has been repurchased and is being held by the company. Subordinated debt is a type of debt that is subordinate to other debt in the event of liquidation. Short-term bank loans are loans provided by banks for a short period of time and are usually secured by collateral. None of these instruments give the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time.

Which of the Following Instruments Gives the Owner the Right