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STOCK BACKDATING

STOCK BACKDATING

what is backdating of STOCK OPTIONS?


Usually a stock option is based on the price of a STOCK TODAY. So if the stock is selling for $20 the employee would have the option to buy it at $20 for some period of time. A back dated stock option would be based on a stock price in the past. For instance the employee would have the option to purchase at the price as of June 1, 2009.

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