SIE (Securities Industry Essentials) 2025 – 400 Free Practice Questions to Pass the Exam!

Pre-emptive rights and stock warrants are both types of investment products that involve purchasing shares of a company. They have a number of similarities, but the most important one is that they both have a fixed price at which the holder can purchase shares. This means that the holder is guaranteed to be able to purchase shares at a specific price, regardless of any changes in the market value of the shares.

Option A is incorrect because it only mentions one characteristic of these products, which is the fixed price at which the holder can purchase shares. Option B is also incorrect because it only mentions the exercise price, but does not mention the fixed price aspect. Option C is incorrect because it only mentions the tradability of these products and does not mention the fixed price aspect.

Option D is the correct answer because it combines the fixed price characteristic (mentioned in option A) and the tradability characteristic (mentioned in option C). By combining these two features, option D provides a more complete and accurate representation of the similarities between pre-emptive rights and stock warrants.