Which of the following would harm the position of a warrant holder?
A) A 3 for 1 stock split
B) A large stock dividend of 20%
C) A large cash dividend
D) Listing of the warrants on the NYSE
E) None of these. would harm the warrant holders.

Question

Quizplus · Accepted Answer

A large cash dividend can harm the position of a warrant holder because it reduces the company's cash reserves, potentially affecting its financial health and stock price, which in turn can decrease the value of the warrants.

Which of the Following Would Harm the Position of a Warrant