Stock appreciation rights allow the recipient to buy the stock or take any appreciation in the stock price in cash,stock,or a combination of the two.

Question

Quizplus · Accepted Answer

Stock appreciation rights (SARs) allow employees to receive the increase in the value of a company’s stock over a certain period of time, usually tied to the company’s performance. The employee gets the option to either receive cash or stocks that reflect the increase in value, also known as appreciation, or the right to buy the stock at the price at which it was offered initially. Therefore, the statement is true.

Stock Appreciation Rights Allow the Recipient to Buy the Stock