A Share of Common Stock Is Not a Derivative,but an Option

question 13

True/False

A share of common stock is not a derivative,but an option to buy the stock is a derivative because the value of the option is derived from the value of the stock.

---

Definitions:

Expectancy Theory

A motivation theory that suggests that individuals are motivated to perform if they believe their efforts will lead to favorable outcomes.

Motivational Problems

Challenges or hindrances that affect an individual’s drive to take action or achieve goals.

Cultural Differences

Variations in the practices, traditions, values, and beliefs among different cultures.

Negative Behavioral Consequences

Undesirable outcomes that result from certain actions or behaviors.