Which of the Following Is False Regarding a Section 83(b)election

question 30

Multiple Choice

Which of the following is false regarding a section 83(b) election?

• A)The election freezes the value of the employee's compensation as of the grant date.
• B)The election is an important tax-planning tool if the stock is expected to increase in value.
• C)The election must be made within 30 days of the grant date.
• D)If an employee leaves before the vesting date, any loss is limited to $3,000.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold on the open market.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.

Market Yield

The current return on investment for a security, factoring in its price variations and dividend payments.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or currency note.