Accounting Interview Question:

What is dividend warrants?

Submitted by: Administrator

Dividend is the part of profits payable to the owners of the company i.e., Shareholders. Some companies issues warrants to its shareholders instead of paying dividends in the form of cash in the form of document by mentioning the Warrant Price and other details.

The price mentioned in it is also called exercise price. Some times company may not specify the name of the holder. The holder of the document can fill it.

Advantages: It helps to the issuing company from paying the Tax.

It is easy to transfer from one person to other without any formalities

It helps to increase the share/capital of the company
Submitted by: Administrator