If Previous Experience Indicates That a Material Number of Stock

question 222

True/False

If previous experience indicates that a material number of stock options will be forfeited before they vest, the fair value estimate of the options on the grant date should be adjusted to reflect that expectation.

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Definitions:

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Equity Court

A type of court that decides cases based on fairness and moral principles, rather than strict adherence to statutory laws.

Decree

An official order issued by a legal authority, often having the force of law.

Federal Statute

A law enacted by the United States Congress that applies nationwide.