A security issued by a firm that gives its owner the right to purchase new shares of stock at a fixed price over a given period of time is called a(n):

Question

Quizplus · Accepted Answer

American warrants give their holders the right to buy the issuer's stock at a specific price until the expiration date, which aligns with the description. Unlike options, which can be created by any investor, warrants are issued by the company itself, offering a way to purchase new shares directly from the company at a predetermined price.

A Security Issued by a Firm That Gives Its Owner