Warrants: These are long-term options issued by a company that give the holder the right to buy shares at a specific price before expiration. They are typically attached to bond or stock offerings to make them more attractive.
Incorrect Options:
A: Warrants do not pay interest.
B: Refers to callable bonds, not warrants.
D: Describes municipal bonds, not warrants.
References:
SEC Guide to Warrants and Options: SEC Warrants Information.
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