Stock options are an approved and well established mechanism for existing owners to sell shares.

Question

Quizplus · Accepted Answer

Stock options are actually a mechanism for employees or other individuals to purchase shares at a pre-determined price. It does not involve existing owners selling shares directly. However, stock options can indirectly impact existing owners by potentially diluting the value of their stock if the options are exercised and more shares are issued.

Stock Options Are an Approved and Well Established Mechanism for Existing