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Stock options ______. (Check all that apply.)Multiple select question.are stock dividends in which additional shares equal to more than 20-25% of the shares outstanding are issuedprovide the holder with the option to purchase stock at a specified price during a specified period of timeare a corporation's option to issue both preferred and common stockare often given to employees as part of their compensation

Question

Stock options ______. (Check all that apply.)Multiple select question.are stock dividends in which additional shares equal to more than 20-25% of the shares outstanding are issuedprovide the holder with the option to purchase stock at a specified price during a specified period of timeare a corporation's option to issue both preferred and common stockare often given to employees as part of their compensation

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Solution

Stock options:

  • Provide the holder with the option to purchase stock at a specified price during a specified period of time
  • Are often given to employees as part of their compensation

Stock options are not stock dividends in which additional shares equal to more than 20-25% of the shares outstanding are issued. They also are not a corporation's option to issue both preferred and common stock.

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