Firms occasionally issue stock options in order to

Question

Quizplus · Accepted Answer

Firms often issue stock options to compensate and motivate both employees and managers, while also conserving cash. By giving employees and managers the option to purchase company stock at a discounted price in the future, they are incentivized to take actions that will increase the value of the company's common shares, which benefits both the individual and the firm as a whole. Therefore, all of the options (A through D) are valid reasons for firms to issue stock options.

Firms Occasionally Issue Stock Options in Order to