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:

Wood

A hard, fibrous material made of the stems and branches of trees or shrubs, often used for construction, furniture, and fuel.

Production Function

A mathematical relationship describing the maximum output possible from a given set of inputs in the production process.

Plastic

A synthetic material made from a wide range of organic polymers that can be molded into shape while soft, and then set into a rigid or slightly elastic form.

Wood

The hard, fibrous structural tissue found in the stems and roots of trees and other woody plants.