Warrants Flashcards
1
Q
A warrant
A
is a security that gives you the right to purchase shares from an issuing company at a specific price in the future.
2
Q
The cost to purchase a warrant on the secondary market is called a
A
Premium
3
Q
By purchasing a warrant, the owner receives the right to buy a set amount of stock at a specified price (referred to as the ______) in the future.
A
strike price
4
Q
is the difference between the market value of the stock and the warrant’s strike price
A
Intrinsic value
5
Q
termination date
A
when the warrant will be expired
