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22 December, 06:31

Which of the following is a basic characteristic of warrants? A. It has an exercise period shorter than one month. B. It increases the required interest rate. C. It improves the marketability of an issue. D. It is non detachable.

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  1. 22 December, 06:56
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    C. It improves the marketability of an issue of stocks.

    Explanation:

    In most cases, the expiration date is one year or more in case of warrants. It may be detachable or non detachable with the underlying stock. It gives the stock purchaser the right to purchase a stock at predetermined price at specified date or before. It is issued to increase the marketability of an issue of stocks.
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Home » Business » Which of the following is a basic characteristic of warrants? A. It has an exercise period shorter than one month. B. It increases the required interest rate. C. It improves the marketability of an issue. D. It is non detachable.
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