Caverun Co.has two classes of stock.The company may:
A) issue stock rights, which are long-term options to buy shares.
B) issue stock warrants, which are short-term options to buy shares.
C) not use stock options to make one class of stock more attractive than the other.
D) use stock options and warrants, the form and content of which are determined by the board of directors, to supplement compensation plans for directors, officers, and employees.
E) Both issue stock warrants, which are short-term options to buy shares and also issue stock rights, which are long-term options to buy shares.

Question

Caverun Co.has two classes of stock.The company may:
A) issue stock rights, which are long-term options to buy shares.
B) issue stock warrants, which are short-term options to buy shares.
C) not use stock options to make one class of stock more attractive than the other.
D) use stock options and warrants, the form and content of which are determined by the board of directors, to supplement compensation plans for directors, officers, and employees.
E) Both issue stock warrants, which are short-term options to buy shares  and also  issue stock rights, which are long-term options to buy shares.

Quizplus · Accepted Answer

Stock options and warrants can be used as part of compensation plans for directors, officers, and employees, and their form and content are typically determined by the board of directors. This allows companies to incentivize and retain key personnel.

Caverun Co.has Two Classes of Stock.The Company May