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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