In the Context of Stock Ownership,what Is Meant by Backdating

question 124

Multiple Choice

In the context of stock ownership,what is meant by backdating a stock option?

• A) Reaping windfall in the stock market by selling stock based on company's nonpublic information
• B) Falsifying numbers in the company's annual report to hide losses and inflate the stock prices
• C) Buying company's stock just before the date of key product launch
• D) Changing the price in the original option agreement so that the option holder can buy stock at a bargain price
• E) Re-evaluating a company's stocks to adjust it to a previous date so that the shareholders and employees minimize the losses

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Definitions:

Janitorial Service

A business or service that provides cleaning and maintenance for buildings, offices, and residential complexes.

Anticipation Inventories

Stock held in anticipation of future demand or usage, allowing companies to meet customer orders without delay, often influenced by seasonal or forecasted demand increases.

Distribution Pipelines

Infrastructure used for transporting goods, utilities, or services from one point to another, often within a supply chain network.

Decoupling Inventory

Inventory kept in reserve to protect the production process from fluctuations in demand or supply, ensuring that operations can continue smoothly despite variability.