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WorldCom Gave Managers Stock Options and Bonuses Even When the Company

question 42

Multiple Choice

WorldCom gave managers stock options and bonuses even when the company performance was declining, and managers sold their stock in advance of other stockholders.This illustrates the_____ approach.


Definitions:

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, sometimes used in reference to the nominal value of securities.

Stock Split

A process initiated by a corporation to split its current stock into several shares in order to increase the shares' liquidity.

Market Price

The current price at which an asset or service can be bought or sold in the financial markets.

Dividend Per Share

The total dividends declared by a company divided by the number of outstanding shares.

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