NISM Series III-C Practice Questions - NISM Series III-C Securities Intermediaries Compliance (Fund) Certification Exam

Warrants grant the holder an obligation to purchase shares, whereas options grant only the right without obligation. Options are long-term instruments with maturities extending up to 15 years, while warrants always expire within 90 days. Warrants are traded exclusively in the over-the-counter (OTC) market, whereas options are traded exclusively on spot markets. Warrants are issued directly by the underlying company and result in share dilution upon exercise, whereas options are standardized exchange-traded contracts between third parties.