Contrary to convertibles, warrants provide for the injection of additional equity capital into a firm immediately.

Question

Quizplus · Accepted Answer

Warrants do not provide for the injection of additional equity capital into a firm immediately; they give the holder the right to purchase the company's stock at a specified price until the expiration date, and only when the holder decides to exercise the warrant does the company receive additional equity capital.

Contrary to Convertibles, Warrants Provide for the Injection of Additional