Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as:
A) stock options.
B) stock grants.
C) restricted stock.
D) performance shares.

Question

Quizplus · Accepted Answer

Stock options are long-term incentive plans in which executives are granted the right to purchase company stock at a fixed price for a fixed period of time. This allows executives to benefit from any increase in the company's stock price over that period.

Long-Term Incentive Plans in Which Rights Are Granted to Executives