The exercise of warrants creates new shares which:
A)increases the total number of shares but does not affect share value.
B)increases the total number of shares and reduces the individual share value.
C)does not change the number of shares outstanding,similar to options.
D)increases share value beca

Question

Quizplus · Accepted Answer

When warrants are exercised, new shares are issued, increasing the total number of shares outstanding, which typically dilutes the value of existing shares, reducing the individual share value.

The Exercise of Warrants Creates New Shares Which