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Displacement current exists wherever there is:
Compensatory Stock Options
Stock options given to employees as part of their compensation package, allowing them to purchase company stock at a discount in the future.
Convertible Preferred Stock
A type of preferred stock that holders can convert into a specified number of shares of the issuing company's common stock.
Unrecognized Compensation Cost
Expenses for employee compensations that have been incurred but not yet reported in the financial statements due to accounting rules.
Convertible Securities
Convertible securities are financial instruments, like bonds or preferred shares, that can be converted into a predetermined number of another type of security, typically shares of common stock, at the option of the holder or the issuer.
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