Which of the following is NOT true?
A) Management has an incentive to issue executive stock options after bad news
B) Management has an incentive to issue executive stock options before good news
C) Executive stock options encourage management to pursue strategies that are best for the company in the long run
D) Management have an incentive to time the announcement of good news just before they plan to exercise their stock options

Question

Quizplus · Accepted Answer

Executive stock options tend to cause management to have short-term horizons.A,B,and D are not true.This is because management want to issue options when the price is low and exercise when the price is high.

Which of the Following Is NOT True