__________ are frequently offered as a sweetener by ﬁrms in combination with private placements of bonds or loans.

Question

Quizplus · Accepted Answer

Warrants are commonly offered as a sweetener in private placements of bonds or loans. Warrants give the investor the right to purchase additional shares of stock at a certain price, which can make the bond or loan more attractive to investors. Put options and put bonds give the holder the right to sell back the security, while call options and call provisions give the issuer the right to repurchase the security.

__________ Are Frequently Offered as a Sweetener by ﬁRms in Combination