Which of the following is the term for a practice where the effective dates on stock options are deliberately changed for the purpose of securing extra pay for management?
A) Backtracking
B) LEAP
C) Arbitrage
D) Backdating

Question

Quizplus · Accepted Answer

Backdating is the term for changing the effective dates on stock options. This allows management to secure extra pay by making it appear as though the options were granted on a date when the stock price was lower, thus increasing their potential profits. Backdating is considered unethical and illegal.

Which of the Following Is the Term for a Practice