If price at which stock is purchased exceeds market value then stock warrants will

Solution (By Examveda Team)

If price at which stock is purchased exceeds market value then stock warrants will be exercised. A stock warrant represents the right to purchase a company's stock at a specific price and at a specific date. A stock warrant is issued directly by a company to an investor. Stock options are purchased when it is believed the price of a stock will go up or down.