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What Are Stock Options? Why Might Stock Options Not Be

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What are stock options? Why might stock options not be exercised? Why do companies reward management with stock options as opposed to cash bonuses?


Definitions:

Social Emotions

Emotions that arise from interactions with others or from the social environment, reflecting the perceived interdependence among individuals.

Function

In a general context, refers to the purpose, role, or activity that something is designed or used for.

Two-Factor Theory

A psychological theory that proposes human emotions are comprised of two components: physical arousal and a cognitive label of that arousal.

Social Standing

The position or rank of a person or group within the social hierarchy.

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