n NISM Certifications
X NISM Series X
Medium

Ms. Rekha holds 500 share warrants of ABC Ltd., convertible after three months. Which options are available to her?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    She may not exercise the option, and ABC Ltd. will forfeit the amount paid

  2. B

    She can transfer warrants to others

  3. C

    She can convert warrants into shares at the pre-determined rate

  4. All of the above

    Correct answer

Why this is the answer

Share warrants can be transferred, converted into shares, or forfeited if not exercised; all options are permissible depending on her choice.

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