Series 7 - General Securities Representative Exam

Preview Mode

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

Pricing