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

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Definitions:

Recategorization

A cognitive process that involves changing the classification or grouping of information, often to reduce intergroup bias.

Dehumanization

The process of depriving a person or group of positive human qualities, leading to the perception of them as less than human.

Cross-Categorization

Cross-Categorization is the practice of classifying individuals or items into multiple overlapping categories or groups based on different attributes.

Positive Contact Situations

Interactions in which individuals from different backgrounds or groups come together in a supportive, cooperative environment, leading to reduced prejudice and enhanced relationships.