Tax Facts

7542 / What is a stock warrant?

Updated: December 30, 2024 at 08:54 AM
A stock warrant is an instrument issued by a corporation granting the owner the right to buy a certain amount of stock at a specified price, usually for a limited time. In the case of the holder, a stock warrant is generally treated like an option.1





1.   IRC § 1234; Rev. Rul. 56-406, 1956-2 CB 523.

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