In Some Long-Term Incentive Plans, Shares Are Awarded Without Cost

question 14

Multiple Choice

In some long-term incentive plans, shares are awarded without cost to the executive, but forfeited if the executive leaves before a vesting period. What are these plans are called?

• A) Stock appreciation rights plans
• B) Restricted share unit plans
• C) Book value plans
• D) Stock options
• E) Phantom stock plans

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels, at a given point in time.

Price Elastic

A term referring to the responsiveness of the demand or supply of a good or service to changes in its price.

Harvest

The process or period of gathering in crops.

Market Conditions

Refers to the various economic and market factors influencing the buying and selling dynamics in a particular market at any given time.