All of the Following Is True About Phantom Stocks Except

question 52

Multiple Choice

All of the following is true about phantom stocks except:

• A) They are expensed over the vesting period
• B) They are not actually issued equity
• C) The company needs cash when phantom stocks are exercised
• D) They grant the holders additional voting power
• E) They lower the dilution effect

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Definitions:

Job Responsibilities

Specific duties and tasks that an employee is expected to perform as part of their role within an organization.

Davis-Bacon Act

A United States federal law that requires paying the local prevailing wages on public works projects for laborers and mechanics.

Walsh-Healy Public Contracts Act

A U.S. federal law that requires minimum wage, maximum hours, and safety and health standards for contractors producing goods for the government.