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What Is the Difference Between Stock Options,stock Purchase Plans,and Stock

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Essay

What is the difference between stock options,stock purchase plans,and stock awards as given to corporate executives? Why are long-term incentive plans for executives frequently criticized?


Definitions:

Stockholder Investments

Funds or assets invested by shareholders into a corporation, typically through the purchase of stock, representing ownership interest.

Beginning Equity

The value of an owner's interest in a company at the start of the accounting period.

Ending Equity

The value of an owner's interest in a company after all liabilities have been subtracted from the company’s assets at the end of an accounting period.

Accounts

Financial records that track the transactions related to a specific asset, liability, equity, revenue, or expense. These are fundamental components of the accounting system used to compile financial statements.

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