______ dilute shareholders' equity when they are exercized
A)Golden handcuffs
B)Stock options
C)Golden parachutes
D)Restricted stock plans

Question

Quizplus · Accepted Answer

Stock options dilute shareholders' equity when they are exercised because they allow employees or executives to purchase company stock at a set price, which can decrease the value for existing shareholders by increasing the number of outstanding shares. Golden handcuffs, golden parachutes, and restricted stock plans do not necessarily involve diluting shareholders' equity.

______ Dilute Shareholders' Equity When They Are Exercized