In a comparison of warrants and rights, it is found the two are ____.
A) similar in that the company can discriminate as to who buys new company stock
B) similar in that they allow the purchase of existing stock only
C) different in that both allow the firm to receive additional funds at the time they are exercised
D) different in that rights allow the holder of the right to vote in corporate elections based on the number of shares the right can purchase

Question

Quizplus · Accepted Answer

Rights and warrants both allow the firm to receive additional funds when they are exercised, as they typically involve the purchase of new shares directly from the company.

In a Comparison of Warrants and Rights, It Is Found