Setting the Exercise Price of Stock Options at the Price

question 67

Multiple Choice

Setting the exercise price of stock options at the price on a date before the date they were granted is:

• A) day trading.
• B) backdating.
• C) earmarking.
• D) overnight rating.

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Definitions:

Maturity Date

The date on which a financial instrument, such as a bond or loan, is due to be repaid in full.

Bank Credit Cards

Financial tools issued by banks that allow cardholders to borrow funds within a pre-approved limit for purchases or cash withdrawals.

Fees

Charges levied for services provided, often related to professional, financial, or administrative tasks.

Factoring Receivables

The financial transaction of selling accounts receivable to a third party (factor) at a discount to obtain immediate cash.