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:

Third Party Intervention

The involvement of an external party in a dispute or negotiation to assist in reaching a resolution or agreement.

Bargaining in Good Faith

The duty of parties to a negotiation to communicate honestly and seriously with the intention to reach an agreement.

Incremental Sales Revenue

Additional revenue generated from sales activity above a previously established base level.

Incremental Marketing Effort

Marketing activities that are added gradually to test their effectiveness or to build upon the existing strategy.