Question

A warrant holder is not entitled to vote, but he or she does receive any cash dividends paid on the underlying stock.

A.True
B.False

Answer 1

A warrant holder does receive any cash dividends paid on the underlying stock.

Step-by-step explanation:

A warrant holder is not entitled to vote, but he or she does receive any cash dividends paid on the underlying stock.

In other words, as a warrant holder, you have the right to receive cash dividends from the underlying stock, even though you don't have voting rights.For example, if you own warrants for a company's stock and the company pays a cash dividend, you would receive a dividend payment based on the number of warrants you hold.