What Is a Phantom Stock Plan

question 15

Multiple Choice

What is a phantom stock plan?

• A)A purchase of stock by an unnamed party.
• B)A cash payment equal to the stock's increase in fair market value over the prior year.
• C)A stock option that is given to only a few employees.
• D)Employee compensation hypothetically invested in stock for a period of time after which the employee receives the fair market value of the stock.

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Definitions:

Individual Preferences

Refers to the unique tastes and priorities that dictate the choice of goods and services by an individual, influencing consumer behavior.

Percent Confident

A statistical measure that quantifies the level of confidence in the likelihood of an event or outcome.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, themselves, and other humans.

Systematic Mistake

Refers to consistent, predictable errors made by individuals or systems due to flaws in the decision process or design.