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The major difference between convertible debt and stock warrants is that upon exercise of the warrants
a. no paid-in capital in excess of par can be a part of the transaction.
b. the stock involved is restricted and can only be sold by the recipient after a set period of time.
c. the stock is held by the company for a defined period of time before they are issued to the warrant holder.
d. the holder has to pay a certain amount of cash to obtain the shares.


Sagot :

The major difference that can be associated with convertible debt and stock warrants is that upon exercise of the warrants the holder has to pay a certain amount of cash to obtain the shares.

This is because in both convertible debt and stock warrants, some amount is been paid in exchange for share.

What are convertible debt and stock warrants?

Convertible debt  can be regarded as a loan or debt obligation in which the payment comes with equity or stocks in a company.

A stock warrant serves as given right in purchasing company's stock at a particular time.

Learn more about convertible debt and stock warrants  at;

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