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If Previous Experience Indicates That a Material Number of Stock

question 222

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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.


Definitions:

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one’s job or role.

Life Events

Significant occurrences in an individual's life, which can include milestones, transitions, or any event having a major impact on one's personal development.

Attitude-Improving Feedback

Constructive feedback provided with the intention of positively influencing someone's attitude or behavior.

Opinions

Personal views, beliefs, or judgments not necessarily based on facts or knowledge.

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