Which of the following would harm the position of a warrant holder?
A) a stock split of 3 for 1.
B) a large stock dividend of 20%.
C) a large cash dividend.
D) listing of the warrants on the NYSE.

Question

Quizplus · Accepted Answer

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

Which of the Following Would Harm the Position of a Warrant