Recently, a Few Companies Have Been Accused of Issuing Stock

question 105

Essay

Recently, a few companies have been accused of issuing stock options to their top executives at the lowest stock price of the year. Executives can later sell these stock shares at a higher price and make a large profit. In some companies, this happened several years in a row. An executive argued, "It's just a coincidence. There are about 250 trading days in a year, so there is a reasonable chance that my option price just happened to be lowest of the year." Discuss.

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Definitions:

Grooming Touch

a form of physical interaction used to clean, maintain, and strengthen social bonds, commonly observed in many animal species and humans.

Premature

Occurring or developing earlier than expected or before the usual time, often used in the context of birth or development.

Human Babies

Describes newborn or very young offspring of human beings.

Hand Massage

A therapeutic technique involving the manipulation of soft tissues in the hands to relieve pain, stress, and improve circulation.