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Employees who receive stock options as compensation: 1. Have the right to receive dividends. 2. May...

Employees who receive stock options as compensation:

1. Have the right to receive dividends.

2. May vote in stockholders' meetings.

3. Have a residual claim in the event of liquidation of the company.

4. Have no stockholder rights until they buy shares of stock as granted in the options.

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Answer #1

Answer:

D) Have no stockholder rights until they buy shares of stock as granted in the options

Explanation to the answer:

(ESO) employee stock option is option granted by the company to its specified employees . Employee stock option gives a right for buying certain amount of share of the company at predetermined price within the specific period of time. Such employee who receive stock option has to buy shares within the specific period so we can say that, employee have no stockholder rights until they buy shares of stock as granted in the options

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