If price at which stock is purchased exceeds market value then stock warrants will
A
be exercised
B
not be exercised
C
be discounted
D
not be discounted
Correct Answer: be exercised
If price at which stock is purchased exceeds market value then stock warrants will be exercised. A stock warrant represents the right to purchase a company's stock at a specific price and at a specific date. A stock warrant is issued directly by a company to an investor. Stock options are purchased when it is believed the price of a stock will go up or down.