The Most Compelling Advantage of Stock Options Is the Potential

question 19

Multiple Choice

The most compelling advantage of stock options is the potential rewards to participants when:

• A) the stock splits
• B) the stock price increases
• C) the stock price more than triples
• D) the stock is placed in a trust fund
• E) the stock price decreases

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Definitions:

Recovery

The process of regaining possession or control of something lost or taken away, or the period of economic rebound following a recession or downturn.

Cash Payback Period

The time period required for an investment to generate cash flows to recover the initial investment cost.

Capital Investment

Funds invested in a business with the expectation of future returns, often in the form of physical assets or capital expenditures.

Recovery

The process of regaining possession or control of something stolen or lost, or the process of returning to a normal state of health, mind, or strength.