Entitlement of equity instruments are based on:

Question

Quizplus · Accepted Answer

Entitlement of equity instruments is typically based on vesting conditions such as time-based or performance-based conditions. This means that the recipient of the equity instrument (such as stock options or restricted stock) must meet certain conditions before they can fully exercise their entitlement. Earnings goals, debt ratios, and return on investment ratios may be used to set performance-based vesting conditions, but they are not the basis for entitlement of equity instruments themselves.

Entitlement of Equity Instruments Are Based On