The basic characteristics of warrants include all of the following EXCEPT it
A) acts as a sweetener in financing.
B) is detachable.
C) lowers the required interest rate.
D) has an exercise period shorter than one month.

Question

Quizplus · Accepted Answer

The basic characteristics of warrants include that they act as a sweetener in financing, are detachable, and can potentially lower the required interest rate. However, warrants can have exercise periods that are shorter or longer than one month depending on the terms of the warrant. Therefore, option D is the exception as it is not a characteristic of warrants.

The Basic Characteristics of Warrants Include All of the Following