Backdating occurs when CEOs (or other executives) reset the date that their options were granted to an earlier date when the stock price was lower.

Question

Quizplus · Accepted Answer

Backdating is a fraudulent practice that involves resetting the date that options were granted to a time in the past when the stock price was lower. This allows executives to benefit and make a profit by exercising their options when the stock price is higher, resulting in a higher gain.

Backdating Occurs When CEOs (Or Other Executives) Reset the Date