Asked by Savannah Pless on May 22, 2024
Verified
An award of stock that is not transferable or subject to forfeiture for a period of years is called
A) phantom stock.
B) treasury stock.
C) restricted stock.
D) preferred stock.
Restricted Stock
A type of stock that is not fully transferable until certain conditions have been met, typically used as part of employee compensation packages.
Transferable
The quality of an asset that allows it to be passed or conveyed from one entity to another.
Forfeiture
The loss of any right, property, or money, usually because of a breach of legal obligation or failure to fulfill some condition.
- Recognize different types of stock and their characteristics.
Verified Answer
GF
Gracful foryouMay 28, 2024
Final Answer :
C
Explanation :
The term "restricted stock" refers to an award of stock that is not transferable or subject to forfeiture for a period of years. Phantom stock refers to a type of bonus plan where employees receive hypothetical shares of the company's stock without actually owning any. Treasury stock refers to shares of a company's own stock that have been repurchased by the company and are being held in its treasury. Preferred stock is a type of stock that typically pays a fixed dividend and has priority over common stock in terms of dividend payments and liquidation preferences.
Learning Objectives
- Recognize different types of stock and their characteristics.