Which of the following companies may issue share warrants?
A
Companies limited by guarantee
B
Private limited companies
C
Public limited companies
D
Trust
Correct Answer: Public limited companies
Public limited companies may issue share warrants. Warrants are sold by companies as a way to raise capital. Although a company could sell stock to raise money, the Securities and Exchange Commission regulates the number of shares a company is allowed to issue. Some companies will issue warrants as a way to sweeten a deal during a takeover or restructuring.