A Section 83(b)election Freezes the Value of Restricted Stock for Compensation

question 96

True/False

A section 83(b)election freezes the value of restricted stock for compensation purposes on the vesting date.

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Definitions:

Systematic Factors

External influences that affect all companies in the market to some extent, such as economic, political, and social changes.

Industrial Production

An economic indicator that measures the level of output in the manufacturing, mining, electric, and gas industries.

Long-term Interest Rates

Interest rates on loan agreements or debt instruments, like bonds, which are due in more than one year.

Market Risk Premium

The additional return expected by investors for taking on the risk of investing in the stock market over a risk-free asset.