Pete joined Texas Technologies as a sales manager. Upon starting, part of his sign-on bonus included the opportunity to buy up to 500 shares of the company's publicly traded stock at $10 per share, during the first three months of employment. The stock was trading on the NASDAQ exchange for $22 per share. Pete's new company was offering a dividend reinvestment plan.

Question

Quizplus · Accepted Answer

The right for employees to purchase shares of their firm's stock at a specified price for a specified period of time is called a stock option plan.

Pete Joined Texas Technologies as a Sales Manager