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This allocated amount is an investment and is a nontaxable cost basis.

Alternatively, you might buy a stock warrant on the market.

For example, the Sales Director's performance related bonus may be based on incremental revenue growth turnover; a CEO's could be based on incremental profitability and revenue growth.

Bonuses are after-the-fact (not formula driven) and often discretionary.

If you wish to obtain information related to this survey, you may submit a request to the Department of Employment and Social Development pursuant to the Access to Information Act.

Instructions for making a request are provided in the publication Info Source, copies of which are located in local Service Canada Centres.

If they immediately sell the shares after buying them, they get to pocket the difference between the old price and the current price.

Companies issue stock warrants as an extra to encourage investors to buy the firm’s stock or bonds.

In some cases, the stock or bond and the warrant are sold as a package deal, and part of the price is allocated to the warrant by the terms of the sale.

A stock warrant is similar to a stock option in that both give you the right to purchase shares of the stock at a guaranteed strike price and you are able to exercise this right for a limited time.

However, warrants are issued by a company for its own stock and are usually good for several years.

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