CUET Preparation Today
Which of the following is not a characteristic of share warrants? |
Conversion into shares Specified date and rate for conversion Representing the right to receive interest Issued against amounts received by the company |
Representing the right to receive interest |
The correct answer is option 3- Representing the right to receive interest. Representing the right to receive interest is not a characteristic of share warrants. Money Received against share warrants is the amount received by the company which are converted into shares at a specified date on a specified rate. The instrument issued against the amount so received as share warrants. Money received against share warrants’ to be disclosed as a separate line item under ‘shareholder’s fund’. |
