What is a "stock option" and does it always have value?


A stock option is given to managers or employees often in lieu of other forms of compensation. It grants them the option to purchase the company stock for a predetermined amount.

Stock options do not always have value. They only have value if the market price of the stock is greater than the option price.

Business

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______ is the principle that when jobs are distinctly different but entail similar levels of ability, responsibility, skills, and working conditions, they are of equal value and should have the same pay scale.

A. Equity theory B. Comparable worth C. Expectancy theory D. Pay structure

Business

One advantage of the indirect strategy is that it respects the feelings of the audience

Indicate whether the statement is true or false

Business

Financing includes all of the following except

a. the owner's money. b. angels. c. equitable payback. d. seed capital.

Business

Lorna Dome, Inc. has an annual interest expense of $30,000. Lorna Dome's times-interest-earned ratio is 4.2. What is Lorna Dome's operating income?

A) $96,000 B) $57,000 C) $126,000 D) $57,600

Business