A detachable stock purchase warrant means that the bondholders may sell the warrant without selling the security to which it is attached.

Question

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A detachable stock purchase warrant is a separate security from the bond to which it is attached, which means that it can be bought and sold independently of the bond. Therefore, bondholders have the option to sell the warrant without selling the underlying bond.

A Detachable Stock Purchase Warrant Means That the Bondholders May