Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A)New SEC rules require firms to report option grants within two days of the grant date,which may help prevent further abuses.
• B)Studies have found evidence that the practice of timing the release of information to maximize the value of CEO stock options is widespread.
• C)Managers have an incentive to manipulate the release of financial forecasts so that good news comes out before options are granted and bad news is delayed until after the options are granted.
• D)The factor contributing most to the climb in CEO total compensation for the 1990s was the sharp increase in the value of stock and options granted each year.

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Definitions:

LED Screens

Displays that utilize Light Emitting Diodes to produce images, widely used in televisions, computer monitors, and digital signage.

Servicing

The process of managing and collecting payments on a loan, mortgage, or other financial debt.

Sherman Act

A landmark federal statute in the United States antitrust law passed in 1890, aimed at prohibiting monopolistic and anti-competitive practices.

Generic Version

A product, typically a drug, that is marketed without a brand name and usually once the patent protection of the branded version has expired.