Which of the Following Is NOT Usually True About Employee

question 4

Multiple Choice

Which of the following is NOT usually true about employee stock options?

• A) There is a vesting period
• B) They can be sold to other employees
• C) They are often at-the-money when issued
• D) Their value is currently a charge to the income statement

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Definitions:

Common Stock Quote

The current price at which a share of common stock is trading on the stock market.

Dividends

Profits paid out by a corporation to its shareholders as distributions.

Payments In Kind

Transactions where the payment is made in goods, services, or other non-cash forms instead of monetary payment.

Retained Earnings

The portion of net income that a company retains instead of distributing to shareholders as dividends, often used for reinvestment in the business or to pay off debt.