Unlike convertible securities, warrants cannot be called, but their limited life stimulates holders to exercise them when the exercise price is below the market price of the firm's stock.

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This statement is true. Warrants are essentially options to purchase stock at a certain price within a certain time frame. Unlike convertible securities, which can be called by the issuer, warrants cannot be called. However, warrants do have a limited life, which incentivizes holders to exercise them when the exercise price is below the current market price of the company's stock.

Unlike Convertible Securities, Warrants Cannot Be Called, but Their Limited