Backdating stock options appears to be an illegal conversion of assets belonging to shareholders to members of management.

Question

Quizplus · Accepted Answer

Backdating stock options involves changing the exercise price of options to a date in the past when the stock price was lower, and this can result in a dilution of shareholder value. This is considered an illegal practice as it effectively converts assets belonging to shareholders to members of management without their consent.

Backdating Stock Options Appears to Be an Illegal Conversion of Assets