Employee Stock Options

question 32

Multiple Choice

Employee stock options:

• A) Have a maximum life of 5 years.
• B) Generally cannot be exercised for the first 4 years.
• C) Generally have a 5-year vesting period.
• D) Are usually forfeited if an employee leaves a firm shortly after the options are granted.
• E) Can be actively traded on the open market once they are vested.

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Definitions:

Variation

In statistics, it refers to the measure of the spread or dispersion of a set of data points or values in a dataset.

Explanatory Variables

Variables in a statistical model that are used to explain variance in the dependent variable; also known as independent variables.

Sales

The exchange of a commodity for money; the action of selling something.

Least Significant

Refers to the component of a data set, measurement, or statistical result that contributes the least impact or importance.