Employee Stock Options

question 17

Multiple Choice

Employee stock options

• A) Can be resold as long as they are "at-the-money"
• B) Are generally issued underwater
• C) Have no value unless the intrinsic value is positive
• D) Are only issued to corporate officers
• E) Help align manager's interests with those of the shareholders

---

Definitions:

Government Involvement

The extent to which a government participates in or influences various aspects of society or the economy.

Rational Basis Review

A standard of review used by courts to evaluate the constitutionality of a law or government action, requiring that the law be rationally related to a legitimate governmental interest.

Establishment Clause

A provision of the First Amendment to the U.S. Constitution that prohibits the government from establishing an official religion, endorsing all religions, or favoring one religion over others.

Free Exercise Clause

A provision in the First Amendment of the US Constitution that protects individuals’ rights to practice their religion freely, without government interference.