Tax Facts

7542 / What is a stock warrant?

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.

Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.