One of the major reasons for attaching a stock purchase warrant is that investors do not require the issuing firm to pay an interest rate as high as on a security that does not have an attached warrant.

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This is true because the attached warrant provides investors with the right to purchase additional shares at a predetermined price, which increases the potential return on their investment. This increased potential return compensates investors for the lower interest rate on the security.

One of the Major Reasons for Attaching a Stock Purchase