In a Stock Option Plan, If the Market Price of the Stock

question 95

Multiple Choice

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

• A) employees can then exercise the option and buy the stock
• B) employees have to purchase the stock at the new price
• C) employees have to forfeit their claims to the company shares
• D) employees will make a loss through stock ownership

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Definitions:

Insider Information

Privileged, non-public information regarding the affairs, operations, or future prospects of a company, which can be exploited for financial gain.

Securities Commission

A Securities Commission is a regulatory body charged with enforcing laws concerning securities and protecting investors by ensuring the stock market operates fairly and transparently.

Online Bankers

Individuals or entities that perform banking activities through internet platforms, including transactions, loans, and account management.

Sports Fans

Individuals enthusiastically devoted to following and supporting athletic games and teams.