Asked by LeeAnn Tiffany on Jul 21, 2024
Verified
What type of securities fraud occurs when an employee falsifies documents to make it appear as though the company had granted options on certain dates,but the dates are selected after the fact by looking backward for dates on which the stock price was low,thereby falsely inflating the profits of the company?
A) Insider trading
B) Pretexting
C) Defalcation
D) Stock-option backdating
E) A Ponzi scheme
Stock-option Backdating
The practice of altering the date of granting stock options to a date when the stock price was lower, to provide a favorable exercise price for the recipient.
Securities Fraud
Deceptive practices in the stock or commodities markets that induce investors to make purchase or sale decisions based on false information, frequently resulting in losses, in violation of securities laws.
- Acknowledge and separate the different kinds of fraud and theft, comprehending their mechanisms and legal ramifications.
Verified Answer
Learning Objectives
- Acknowledge and separate the different kinds of fraud and theft, comprehending their mechanisms and legal ramifications.
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