This form requires the percentage of common & preferred stock owned by each officer. When calculating this percentage, do you include options & warrants, which doing so will dilute the total percentage?

“When calculating this percentage, do you include options & warrants, which doing so will dilute the total percentage?”------> Most investors don't know much about stock warrants, which can be good investment opportunities. Warrants are similar to options in that they give the investor the right to buy or sell a stock at a set price but have some advantages. This increases the number of shares outstanding, diluting EPS calculations. Warrants are considered long-term investments. Sometimes they are referred to as perpetual warrants or subscription warrants. Warrants issued by a publicly traded bank holding company should be included in equity capital on the balance sheet provided the bank holding company has sufficient authorized but unissued shares of the common stock to allow exercise of the warrants and any other necessary shareholder approvals have been obtained. Requests for additional information or copies of the form and instructions should be directed to Joel Goldberger, (202) 927-9368, at Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or through the Internet at [email protected].