To Keep the Value of the "Under-Water" Employee Stock Options

question 95

Multiple Choice

To keep the value of the "under-water" employee stock options afloat, company may

• A) shorten the vesting period
• B) raise the exercise price
• C) buy back all outstanding common shares in the market
• D) lower the exercise price
• E) lengthen the vesting period

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Definitions:

Initial Offer

The first proposal made by one party to another during negotiations.

Closing Of Escrow

The process by which a third party mediates and finalizes the transfer of property between two parties, ensuring that all legal and financial conditions are met.

Settlement

An agreement reached between parties in a dispute, ending the dispute and avoiding taking the matter to trial.

Purchase Agreement

A legally binding contract outlining the terms and conditions for the sale and purchase of goods, services, or property.