Which of the Following Statements Regarding Restricted Stock Is False

question 22

Multiple Choice

Which of the following statements regarding restricted stock is false?

• A)Like stock options, restricted stock has to vest before it can be sold.
• B)Like nonqualified stock options, the employee's income inclusion for restricted stock is the bargain element.
• C)Even if the value of restricted stock decreases from the price on the grant date, it retains some value to the employee.
• D)There are no effective tax planning elections for restricted stock.

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Definitions:

Two-Sided Argument

A persuasive strategy that presents both the advantages and disadvantages of a particular argument or position.

Feared Consequence

Feared Consequence is a psychological term referring to the anticipation of a negative outcome that motivates behavior to avoid it.

Self-Perception Theory

The theory that individuals determine their attitudes and preferences by interpreting the meaning of their own behavior.

Cognitive Dissonance

The psychological unease felt by an individual harboring two or more conflicting beliefs, ideas, or values simultaneously.