Employees who receive stock options as compensation:
A)Have the right to receive dividends.
B)Have a residual claim in the event of liquidation of the company.
C)May vote in stockholders' meetings.
D)Have no stockholder rights until they buy shares of stock as granted in the options.

Question

Quizplus · Accepted Answer

Stock options grant the employee the right to buy shares at a set price after a certain period of time, but until they exercise these options and actually purchase the shares, they do not have any of the rights that come with stock ownership, such as receiving dividends, voting in stockholders' meetings, or having a residual claim in the event of liquidation.

Employees Who Receive Stock Options as Compensation