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What Is a Stock Option? What Are Some of the Problems

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What is a stock option? What are some of the problems associated with rewarding managers with stock options?


Definitions:

Differential Carrier

The component within the differential housing that holds the differential gears, allowing for speed variation between a vehicle’s drive wheels.

Lube Pump

A mechanical device used to distribute lubricant under pressure to various parts of a machine or engine to ensure smooth operation and reduce wear.

Pressurized Lubricant

Lubrication method in which oil or another fluid is pumped under pressure to bearings, gears, and other components needing reduced friction and wear.

Spider

The axle hub mounting to which truck foundation brakes are mounted. Also a slang term for a U-joint cross or trunnion.

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