Which of the Following Statements Regarding Restricted Stock Is False

question 73

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 is no effective tax planning elections for restricted stock.

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Definitions:

Bona Fide Occupational Qualification

Bona Fide Occupational Qualification (BFOQ) refers to a work requirement that is necessary for the normal operation of a particular business or job, which might be an exception to discrimination laws.

Business Necessities

Essential requirements or critical needs that enable a company to operate and achieve its objectives effectively.

Vocational Rehabilitation Act

A U.S. federal law enacted in 1973 designed to assist individuals with disabilities in obtaining and maintaining employment.

Affirmative Action

Policies and procedures designed to combat discrimination and promote diversity by favoring individuals belonging to groups historically discriminated against.