What Is Meant by Backdating a Stock Option

question 41

Multiple Choice

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

---

Definitions:

Pubertal Hormones

Hormones that trigger the physical changes associated with puberty, including sexual development and growth spurts.

Adolescent Mood

The emotional state or prevailing feeling often experienced during adolescence, marked by rapid emotional changes and sensitivity.

Transition

The process or a period of changing from one state or condition to another.

Middle School

An educational institution serving early adolescents, usually between the grades of 6 and 8, acting as a bridge between elementary school and high school.