Which of the following is NOT a common feature of financing with warrants?
A) An exercise price that is below the market price of common stock at the time the warrant is issued
B) Typical life of a warrant is between 5 and 10 years
C) Warrant is usually detachable from a debenture or preferred stock
D) If a warrant is issued as part of a "unit," it is usually detachable from a debenture or preferred stock

Question

Quizplus · Accepted Answer

The exercise price of a warrant is typically set above the current market price of the stock at the time of issue, not below. This is to give the company's stock price room to grow, making the warrant valuable to the holder if the stock price exceeds the exercise price before the warrant expires.

Which of the Following Is NOT a Common Feature of Financing