Which of the following terms refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future?
A) at-risk variable plan
B) multiplier method
C) stock option
D) gainsharing plan
E) split-award plan

Question

Quizplus · Accepted Answer

A stock option is a type of equity compensation that gives employees the right to purchase a stated number of shares of the company stock at today's price at some time in the future. This can provide an incentive for the employee to work hard and contribute to the company's success, as the value of the stock option will increase if the company's stock price increases.

Which of the Following Terms Refers to the Right to Purchase