All of the following is true about phantom stocks except:
A) They are expensed over the vesting period
B) They are not actually issued equity
C) The company needs cash when phantom stocks are exercised
D) They grant the holders additional voting power
E) They lower the dilution effect

Question

Quizplus · Accepted Answer

Phantom stocks do not grant holders additional voting power because they are not actual shares of stock but rather a promise to pay an employee a bonus equivalent to the value of the company's stock.

All of the Following Is True About Phantom Stocks Except