Where are warrants typically attached?

Warrants are financial instruments that give the holder the right to purchase a company's stock at a specific price within a certain timeframe. They are typically attached to bonds or preferred stocks as a means to enhance the attractiveness of these securities to investors. When warrants are included with bonds or preferred stocks, they provide an additional incentive for investors, potentially allowing them to benefit from any appreciation in the company's stock price while receiving fixed interest payments or dividends from the bond or preferred stock.

This attachment helps companies raise capital, as the inclusion of warrants can make the offering more appealing and therefore increase demand. When investors see the potential for capital gains through warrants in addition to steady income from bonds or preferred stock, they may be more likely to invest.

In contrast, common stocks do not typically come with warrants attached, as they already represent ownership in the company. Liquidated assets and treasury stocks do not have the relationship with warrants that bonds and preferred stocks do, as these refer to different stages of a company's capital structure or reserved shares that the company has decided to keep.