Which of the Following Is True About the Practice of Backdating

question 5

Multiple Choice

Which of the following is true about the practice of backdating a stock options grant?

• A) It is illegal
• B) It is illegal in the majority of states in the U.S., but not all states
• C) It is illegal in roughly half the states in the U.S.
• D) It is unethical, but not illegal

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Definitions:

365-Day Year

A calendar year used for financial calculations, representing the actual number of days in most years.

Total Amount

The entire sum of money required for or received from a transaction.

Exact Simple Interest

Interest calculated exactly on the principal amount of a loan or investment, without compounding, over a specific period of time.

365-Day Year

A calendar year approach used in financial calculations, assuming the year has exactly 365 days for the purpose of interest computation.