Giving an investor the right to buy shares in the issuing company at a predetermined rate is termed:

Question

Quizplus · Accepted Answer

The term warrant refers to the right given to investors to buy shares in the issuing company at a predetermined rate, which means that B is the correct choice. Option is a more general term that refers to the right, but it also applies to other types of assets, such as commodities or currencies. Private placement is a method of raising capital that involves selling securities directly to investors, and consideration refers to the value that is given in exchange for a promise or contract.

Giving an Investor the Right to Buy Shares in the Issuing