Which of the Following Statements Regarding Restricted Stock Is False

question 62

Multiple Choice

Which of the following statements regarding restricted stock is false?

• A)Like stock options,restricted stock has to vest before it can be sold.
• B)Like nonqualified stock options,the employee's income inclusion for restricted stock is the bargain element.
• C)Even if the value of restricted stock decreases from the price on the grant date,it retains some value to the employee.
• D)There is no effective tax planning elections for restricted stock.Employees are taxed on the fair market value of the restricted stock.

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Definitions:

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system by rhythmic contraction and dilation.

Arrector Pili

Small muscles connected to hair follicles that, when contracted, cause hair to stand up, producing 'goosebumps'.

Goose Bumps

The raising of small bumps on the skin due to the contraction of miniature muscles at the base of hair follicles, usually in response to cold or fear.

Hair Follicles

The skin organ that produces hair, consisting of a small tubular cavity containing the root of a hair and located in the dermis of the skin.