If a company distributes stock to employees by granting stock options, employees exercise the option when they
A) purchase the stock.
B) sell the stock.
C) retain the stock.
D) distribute the stock.
E) liquidate the stock.

Question

Quizplus · Accepted Answer

When employees are granted stock options, they are given the option to purchase the company's stock at a set price within a certain period of time. Once they decide to exercise the option, they purchase the stock at the set price and become owners of the stock.

If a Company Distributes Stock to Employees by Granting Stock