Q47
Which of the following companies may issue share warrants?
A.
Companies limited by guarantee
B.
Private limited companies
C.
Public limited companies
AnswerD.
Trust
Answer: Option C
Solution
Answer: Option C
Solution:
Public limited companies may issue share warrants. Warrants are sold by companies as a way to raise capital. Although a company could sell stock to raise money, the Securities and Exchange Commission regulates the number of shares a company is allowed to issue. Some companies will issue warrants as a way to sweeten a deal during a takeover or restructuring.