Which of the Following Statements About Stock Option Plans Is

question 43

Multiple Choice

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

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

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Definitions:

Knock.Com

A real estate technology company that makes buying or selling homes more convenient by streamlining various processes.

Realtor.Com

Realtor.com is a real estate listings website that provides comprehensive information about homes for sale, apartments for rent, and insights about properties and neighborhoods to help users make informed decisions.

Financial Analysts

Professionals who assess the financial health of businesses, projects, or securities and provide investment recommendations based on their analyses.

Knowledge Workers

Individuals whose primary job involves processing and working with information, requiring specialized knowledge or technical skills.