The major difference between convertible debt and stock warrants is that upon exercise of the warrants

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Convertible debt is a type of financing where a company issues debt that can be converted into equity (typically common stock) at a specified conversion price. On the other hand, stock warrants are options that give the holder the right (but not the obligation) to buy a certain number of shares of a company's stock at a specified price (the exercise price) for a certain period of time.

When a warrant holder decides to exercise their warrants, they have to pay the exercise price in cash to obtain the shares. This is the major difference between convertible debt and stock warrants - with convertible debt, the conversion is automatic and the shares are typically issued to the holder without any additional payment.

The Major Difference Between Convertible Debt and Stock Warrants Is