The Date on Which Stock Options Are No Longer Subject

question 33

True/False

The date on which stock options are no longer subject to forfeiture is called the vesting date.

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Definitions:

Green Shoe Option

A clause contained within the underwriting agreement of an IPO that allows underwriters to purchase up to an additional 15% of shares at the offering price.

Abnormal Returns

Returns on a security or portfolio that differ significantly from the expected rate, given the asset's risk level and the market's overall performance.

Spread

The difference between two prices, yields, or interest rates, commonly used in financial markets to measure the gap between bid and ask prices.

Public Issue

The creation and sale of securities on public markets.