Which of the following statements is true about warrants?

Warrants do not confer voting rights to their holders. Unlike shareholders, who possess voting rights proportional to their share ownership, warrant holders merely hold the right to purchase shares at a future date without any associated rights until they convert their warrants into actual shares.

Warrants are generally longer-term instruments compared to rights. While rights typically have a short exercise period (often weeks), warrants can have exercise periods that extend over several years, allowing investors more time to decide whether to exercise them based on stock performance.

In fact, warrants attached to debentures can enhance their attractiveness by providing potential upside through the option to purchase shares at a fixed price. Investors may be more willing to purchase debentures that include warrants, as they offer an additional opportunity for profit if the underlying stock performs well.