Which of the Following Is True

question 75

Multiple Choice

Which of the following is true?

• A)Employees receive stock rights as a form of compensation.
• B)Employees in general may not transfer or sell stock rights to others.
• C)Stock rights give shareholders the right to purchase shares of common stock at half-price.
• D)Stock rights usually do not trade in public markets.
• E)Firms grant stock rights to current shareholders.

---

Definitions:

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Market Price

The contemporary financial figure for the trade of services or assets in a marketplace.

Net Present Value

A financial metric used to evaluate the profitability of an investment, which calculates the present value of all future cash flows minus the initial investment cost.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.