The effect of backdating stock options:

Question

Quizplus · Accepted Answer

Backdating stock options can increase their value to the grantee, as they are given a lower strike price. However, it also postpones the booking of the actual costs to the company, which can distort their reported expenses and potentially mislead investors. Therefore, both options a and b are correct. The effect on the company's financial report is not insignificant, as it can have serious implications for transparency and accuracy.

The Effect of Backdating Stock Options