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What Is the Difference Between Stock Options,stock Purchase Plans,and Stock

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Essay

What is the difference between stock options,stock purchase plans,and stock awards as given to corporate executives? Why are long-term incentive plans for executives frequently criticized?


Definitions:

Foreign Distributor

An entity or individual that manages the distribution and sale of goods or services in a market outside of the supplier's home country.

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it fully controlled by the parent company.

Parent Company

A corporation that owns enough voting stock in another company to control management and operations by influencing or electing its board of directors.

Direct Exporting

The process of selling goods and services from one country directly to customers in another country without using intermediaries.

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