A technique that allows an executive to share in the increase of a company's stock without putting up the money to buy stock via the exercise of options is called:

Question

Quizplus · Accepted Answer

Stock appreciation rights (SARs) allow an executive to receive cash or stock equal to the appreciation in the company's stock price since the grant date of the SARs. This allows the executive to benefit from the increase in the company's stock price without having to purchase the stock via options or pay upfront for it. SARs are considered an equity-based form of compensation and are typically offered as part of a long-term incentive plan.

A Technique That Allows an Executive to Share in the Increase