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A Company May Choose to Add to the Vesting Period

question 16

True/False

A company may choose to add to the vesting period a performance criterion for determining whether to award stock options or stock units,commonly referred to as restricted stock units.(Restricted Stock Plans and Restricted Stock Units)


Definitions:

Market Price

The current price at which goods or services are bought and sold in a competitive marketplace.

Price Floor

A floor price established by the government or regulatory authority, representing the lowest legal selling price for a specific product or service.

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.

Surplus

A situation where the quantity of a product or service supplied exceeds the quantity demanded at the current price.

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