stock option

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Issue:

Business

 

Written by:

Gary F

 

Date added:

November 13, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 601

 

Was viewed:

3023 times

 

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Already, some companies have begun restating years worth of financial results. To try to answer some questions about what's going on, CNET News.com has compiled the following list of frequently asked questions. Q: What is stock option backdating? Backdating, which refers to the practice of altering the dates of grants, is a way for employees of a company to make additional money from stock options...
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While it's not necessarily illegal, in many cases it could be. Q: How do stock options work? Stock options give the recipient the right to buy a share of a company's stock at a price called the strike price, which is equal to the value of the stock on a certain date. If, for example, the strike price is $10 and the shares now trade at $15, each option would be worth $5...
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