Series 7 - General Securities Representative Exam
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A company issues the right to buy a specific amount of stock at a fixed price. This is known as a(n)
Call
A
Preferred Stock
B
Option
C
Warrant
D
Explanations
Options are contracts between 2 people and are not written by the issuer. The issuer issues warrants and it gives the holder the right to buy a specific amount of stock at a fixed price