Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.
-Vesting period
A)Expensed as compensation in the period earned
B)Benefit period over which stock option compensation expense is spread.
C)Paid-in capital effectively renamed under the fair value approach
D)Shares given for achieving financial goals
E)A right to buy shares of stock in the future.

Question

Quizplus · Accepted Answer

The vesting period is the time frame over which an employee earns the right to exercise their stock options or rights. This period is also when the expense related to stock-based compensation is recognized in the financial statements, making option B the correct match.

Listed Below Are Five Terms Followed by a List of Phrases