I'll be very general when I ask these questions ok. If some entity has warrants of a company, say at $1 and the current share price when they exercise the warrants is $1.50 do they pay taxes based on the .50 gain ? Also, to minimize the tax tax implication ( if that is the case ) is there an incentive there to manipulate the share price down so when they exercise the warrant they pay less tax ? Having said that, if news was coming on said company would there not be a bit of a hurry to exercise warrants ( whether they are expiring or not ) prior to news and while the SP is lower. Exercise your warrants and see the SP rise after news ? I hope that's clear as mud :) If anyone can give a few answers I'd appreciate it. TIA Crzyhors