In a Stock Option, the Price at Which the Employee

question 48

Multiple Choice

In a stock option, the price at which the employee may buy the shares is the:

• A)market price.
• B)exercise price.
• C)price at the grant date.
• D)there is no price; they are given the shares as compensation.

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Definitions:

Cumulative Voting

A voting system in corporate governance that allows shareholders to concentrate their votes on a single candidate, enhancing minority shareholders' representation.

Minority Shareholder

An investor or shareholder who owns less than 50% of a company's shares, holding lesser voting power and control over corporate decisions compared to majority shareholders.

Extraordinary Measures

Extraordinary measures refer to unconventional or exceptional actions taken, often by governments or organizations, in response to critical and unusual situations.

Corporate Transactions

Deals or agreements that involve companies, including mergers, acquisitions, divestitures, and other activities that alter the corporate structure or ownership.