3.
Explanation
Share Certificates:
- Serve as evidence of ownership of shares.
- Represent actual ownership in the company.
- Shareholders with certificates have dividend and voting rights.
- Can be in physical or electronic form.
- Transferable to others in whole or part.
- Can be issued as bearer shares or registered shares.
- No expiration date; valid as long as the shareholder owns the shares.
Share Warrants:
- Are financial instruments granting the option to purchase shares.
- Do not represent ownership of shares themselves.
- Holders of warrants do not have dividend or voting rights until they exercise the warrant.
- Do not have physical form; they are financial contracts.
- Can be transferred in the market.
- Have an expiration date; if not exercised by the date, they become worthless.
- Provide the right, but not the obligation, to acquire shares at a predetermined price.