Stock Options

question 15

Multiple Choice

Stock options:

• A) provide the holder with the option to purchase stock at a specified price during a specified period of time.
• B) are stock dividends in which additional shares equal to more than 20 to 25%.
• C) of the shares outstanding are issued.
• D) are a corporation's option to issue both preferred and common stock.

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Definitions:

Business Combination

The process of joining two or more companies into a single entity, often to expand market share, diversify, or achieve other business objectives.

Outstanding Shares

The total number of shares of stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Copper Production

The process of extracting copper from its ores and converting it into pure metal for use in various industries, including electrical wiring, construction, and automotive.

Nickel Production

The process of extracting nickel ores from the ground and refining them into pure nickel, used in various industrial applications.