Essay heading: A Brief Understanding of Backdating Stock Options

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November 14, 1998






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Reyes, once listed on the Forbes 400 list, now faces 20 years in prison and a $5 million fine.(2)” Sources: (1);txt (2)
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Backdating Stock Options for employees usually results in immediate gains for the employee. For example, if an employee is granted an at-the-money (par value) stock option today, and the stock is worth $20, the employee will have to wait for the price to increase before any money can be earned. If the at-the-money option is backdated to a time when the stock price was $15 dollars, the employee has automatically earned $5 per option...
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