Options backdating
Definition
Awarding employees with stock options those are dated prior to the actual grant date. The date chosen could be one when the company’s stock was at a low, so the options can be in-the-money at the time of granting itself. The practice is illegal if it is not followed by proper disclosure and related expenses are not recorded in financial statements.
Nearby Terms
Investing Essentials
-
Getting Started In Stocks
Investopedia
-
The NASDAQ Dozen
Learning Markets
-
The 10 Commandments Of Investing
Investopedia
-
The Lowdown On Penny Stocks
Investopedia
-
10 Things To consider Before Selecting An Online Broker
Investopedia
-
Start Investing With Only $1,000
Investopedia
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University
Term of the Day
Discretionary trust
In the context of mutual funds, refers to a mutual fund or unit trust whose management decides on the best way to use the assets without restriction to a specific type of security. In the context of... Read More
Get the Term of the Day in your inbox!
