Warrants are similar to convertible debt in that they require the issuance of debt in order to obtain the right to acquire common stock.

Name: Warrants are similar to convertible debt in that they require the issuance of debt in order to obtain the right to acquire common stock.
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Warrants are not debt but rather a derivative security that gives the holder the right to purchase common stock at a certain price within a certain time frame. They are typically sold separately from debt offerings.

Warrants Are Similar to Convertible Debt in That They Require