A Section 83(b)election Freezes the Value of Restricted Stock for Compensation

question 96

True/False

A section 83(b)election freezes the value of restricted stock for compensation purposes on the vesting date.

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Definitions:

Units

Refers to a single, distinct item or entity that is part of a larger quantity, often used in the context of measurement or count.

Utility Function

A mathematical representation that ranks an individual's preference for different combinations of goods or outcomes.

Budget Constraint

The limit on the consumption bundles that a consumer can afford to purchase, based on their income and the prices of goods and services.

Income

Income that is earned from work or investments, which is typically received at regular intervals.