As a financing device for creating common stock, warrants are usually more desirable than convertible bonds.

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Warrants and convertible bonds serve different purposes and have different characteristics. Warrants are options issued by a company that give the holder the right to purchase the company's stock at a specific price before a certain date, which can be a way to raise capital without immediately diluting the share value. Convertible bonds, on the other hand, are debt securities that can be converted into a predetermined number of the company's shares, typically at the discretion of the bondholder. They offer the company a way to raise capital with potentially lower interest rates due to the conversion feature. The desirability of warrants versus convertible bonds depends on the specific financial strategy and needs of the company and the preferences of the investors.

As a Financing Device for Creating Common Stock, Warrants Are