Caverun Co. has two classes of stock. The company may:
A) issue stock warrants, which are short-term options to buy shares.
B) issue stock rights, which are long-term options to buy shares.
C) not use stock options to make one class of stock more attractive than the other.
D) use stock options and warrants, the form and content of which are determined by the board of directors, to supplement compensation plans for directors, officers, and employees.
E) Both issue stock warrants, which are short-term options to buy shares and also issue stock rights, which are long-term options to buy shares.

Question

Caverun Co. has two classes of stock. The company may:
A) issue stock warrants, which are short-term options to buy shares.
B) issue stock rights, which are long-term options to buy shares.
C) not use stock options to make one class of stock more attractive than the other.
D) use stock options and warrants, the form and content of which are determined by the board of directors, to supplement compensation plans for directors, officers, and employees.
E) Both issue stock warrants, which are short-term options to buy shares  and also  issue stock rights, which are long-term options to buy shares.

Quizplus · Accepted Answer

Stock options and warrants are both used to make one class of stock more attractive than the other.