Question

Match the following terms to their definitions.

1.	Stock options
2.	Stock rights
3.	Warrants
4.	Convertibles
5.	Dividents

A.) Gives holders the right to buy a share of stock at a stated price at an exercise price above current market levels.

B.) Debt or stock that can be changed into shares of common stock.

C.) Gives holders the right to buy a share of stock at a stated price.

D.) Payments made to owners from corporate profits.

E.) Gives holders the right but not the obligation to purchase shares of stock.

Answer 1

Correct match is as under:

1. Stock options - C.) Gives holders the right to buy a share of stock at a stated price.

2. Stock rights- A.) Gives holders the right to buy a share of stock at a stated price at an exercise price above current market levels.

3. Warrants - B.) Debt or stock that can be changed into shares of common stock.

4. Convertibles - E.) Gives holders the right but not the obligation to purchase shares of stock.

5, Dividents - D.) Payments made to owners from corporate profits.