An Addition to Employee Compensation Whereby the Corporation Provides a Right

question 223

Multiple Choice

An addition to employee compensation whereby the corporation provides a right to purchase stock at a set price is called

• A)treasury stock.
• B)a stock option.
• C)the conversion privilege.
• D)a call option.

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Definitions:

Normal Growth

In stock pricing models, growth at a rate less than the rate of return. Growth rates in excess of the rate of return are super normal.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with fixed dividends.

Annual Return

The percentage change in the value of an investment over a one-year period, including dividends, interest, and capital gains.

Supernal Growth

refers to extraordinary or exceptional growth in a business or economic sector.