What is a primary advantage of warrants for issuers?

The primary advantage of warrants for issuers lies in the ability to obtain immediate cash without delayed payments. When companies issue warrants, they provide investors with the right to purchase shares at a specific price within a set time frame. When these warrants are exercised, the company receives immediate cash in exchange for issuing new shares. This capital can be crucial for companies looking for funds to invest in growth initiatives without having to incur additional debt or delay their financing efforts.

In contrast, the other choices do not accurately reflect the benefits of warrants for issuers. Guaranteed equity ownership refers to the rights of shareholders and is not a characteristic associated with warrants. Minimizing initial public offering costs does not apply since warrants are not directly related to IPO expenses but are more about providing a sweetener to enhance the attractiveness of the offering. Lastly, securing fixed interest payments is typically associated with bond financing rather than equity-linked instruments like warrants, which do not entail fixed payments but instead offer potential equity participation.