Discuss the use of and types of stock options
Stock options entitle their holders to purchase from the corporation shares of a specified class or classes of stock. A stock warrant is a type of stock option that typically has a longer term and is freely transferable. A stock right is a short-term warrant. The board of directors determines the terms upon which stock rights, options, or warrants are issued; their form and content; and the consideration for which the shares are to be issued. Stock options and warrants may be used in incentive compensation plans for directors, officers, and employees. They may also be used to help a corporation raise capital by making one class of securities more attractive by including in it the right to purchase shares in another class.
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a. True b. False
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