SIE - Securities Industry Essentials Exam
During an IPO, an issuer offers the original investors the privilege to obtain more shares at a fixed price, at $10 higher than the current market price, with a 2 year expiration. The issuer is offering:
These securities are known as warrants. Options are contracts between 2 parties (not the issuer). Futures are not securities. Rights are close to warrants; but they expire within a few weeks and are usually issued at a price LOWER than the current market price.