A security that gives the holder the right, but not the obligation, to purchase shares of stock in a firm for a fixed price over a specified period of time is called a(n) :

A) Convertible bond.
B) Warrant.
C) Initial public offering.
D) Seasoned equity offering.
E) Forward sale of equity.

Warrant

A financial instrument that gives the holder the right, but not the obligation, to buy a company's stock at a specified price before a certain date.

Convertible Bond

An investment vehicle that permits conversion into a fixed number of the issuing company's equity shares at select moments over its lifespan, usually upon the decision of the person owning the bond.