One of the major reasons for not attaching a warrant is that investors require the issuing firm to pay a higher interest rate if a warrant is attached than if it is not.

Question

Quizplus · Accepted Answer

Warrants are generally attached to bonds or preferred stock as an added incentive to investors, allowing them to purchase the company's stock at a fixed price in the future. Attaching a warrant can actually lower the interest rate or dividend that the company must pay because the warrant adds value to the investment.

One of the Major Reasons for Not Attaching a Warrant