Which of the following instruments gives the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time?
A)warrant
B)Treasury stock
C)subordinated debt
D)short-term bank loan

Question

Quizplus · Accepted Answer

A warrant is an instrument that gives the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time. Treasury stock is the stock repurchased by the company. Subordinated debt is a loan that is paid off after other debts are settled, and a short-term bank loan is a loan with a fixed repayment term. None of these choices provides the owner with the right to purchase securities directly from the firm.

Which of the Following Instruments Gives the Owner the Right