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Which of the following statements is incorrect? a. Warrants are similar to call options. b. Warrants allow the shareholder to purchase new shares of stock
Which of the following statements is incorrect?
a. Warrants are similar to call options.
b. Warrants allow the shareholder to purchase new shares of stock in a company usually at a premium price.
c. The tax rules that apply to warrants are the same as those that apply to splits.
d. If an investor has the choice between cash and a warrant and chooses the warrant it is treated as a dividend.
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