Which of the Following Statements About Stock Option Plans Is

question 17

Multiple Choice

Which of the following statements about stock option plans is false?

• A) Stock options usually have a grant price equal to the market price of the share when the options are first offered to the executives.
• B) The holder of a stock option has an interest in a company's performance but not in the same manner as a shareholder.
• C) Offering excessive stock options to a company's managers reduces the likelihood they will not always act in the best interest of the investors.
• D) Stock option plans are often a major part of an executive's compensation plan.

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Definitions:

Peanuts

Informally, a very small or insignificant amount of money; literally, a legume crop grown mainly for its edible seeds.

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Dried grapes often used as a snack or cooking and baking ingredient.

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A telecommunications term referring to a facility where customers' calls are switched by the local central office of a telecommunications provider.

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The systematic process of maintaining and organizing records or documents relevant to a business, institution, or individual.