Which one of the following occurs whenever a warrant is exercised?
A)The issuer receives the greater of the exercise price or the stock price
B)The number of shares outstanding increases
C)Currently outstanding shares are exchanged between individual shareholders
D)A new warrant is issued to replace the exercised warrant
E)The issuer pays the lower of the exercise price or the stock price

Question

Quizplus · Accepted Answer

Whenever a warrant is exercised, the number of shares outstanding increases as new shares are issued to the warrant holder. The other options are not accurate.

Which One of the Following Occurs Whenever a Warrant Is