A grant of units equal in value to the fair market value or book value of a share of stock;on a specified date the executive will be paid the appreciation in the value of the units
Up to that time.This is known as:
A) Stock appreciation rights
B) A stock purchase
C) Restricted stock
D) Phantom stock

Question

Quizplus · Accepted Answer

This is an example of phantom stock, where the executive is granted units that appreciate in value over time, but they do not actually own any stock. The payout is in cash or additional units based on the increase in value of the phantom stock. Stock appreciation rights (A) typically involve granting the right to receive cash or stock based on the increase in value of actual stock. Stock purchase (B) involves buying actual stock at a set price. Restricted stock (C) is stock that is granted to an executive, but with restrictions on when it can be sold or transferred.

A Grant of Units Equal in Value to the Fair