Which of the Following Is Incorrect Regarding Employee Stock Options

question 6

Multiple Choice

Which of the following is incorrect regarding employee stock options?

• A) It allows management to purchase shares at a fixed price over a period of time.
• B) It provides the manager with an ownership stake in the company.
• C) Options are meant to align the manager's and actions with shareholders' interests.
• D) Many believe management are already overpaid.
• E) Many believe management are underpaid and stock options will benefit pay.

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