Stock options often are granted by a corporation to management personnel as a means of additional compensation to and motivation of these employees.

Question

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Stock options are commonly used as a form of incentive and compensation for management and other key employees of a corporation. The intention is to motivate these individuals to work hard for the company's success, since their personal financial gain will be tied to the corporation's profitability and stock price.

Stock Options Often Are Granted by a Corporation to Management