Stock options do not require a cash outlay from the company,while stock appreciation rights often do require a cash outlay.

Question

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Stock options grant employees the right to purchase company stock at a set price, not requiring the company to spend cash. In contrast, stock appreciation rights (SARs) typically result in a cash payment to the employee based on the increase in stock price, thus requiring a cash outlay from the company.

Stock Options Do Not Require a Cash Outlay from the Company,while