1. What is a stock option? Why are stock options costly forcompanies? 2. Why...

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Accounting

1. What is a stock option? Why are stock options costly forcompanies? 2. Why did CEO pay increased dramatically in the 1990s?3. What do you think about the Standard Setting Process of theAccounting Rules
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Q1a Stock optionAn investment opportunity is an agreement between two gatherings that gives the purchaser the option to purchase or sell underlying stocks at a foreordained cost and inside a predefined timeframe At the point when an individual possesses stock in an organization the individual is known as an investor and is qualified to guarantee part of the organizations remaining resources and profit should the organization actually need to break up An investor may likewise be alluded to as an investor The expressions stock offers and value are utilized conversely in present day money related language The securities exchange comprises of trades where financial specialists can purchase and sell singular portions of an organization A dealer of the investment opportunity is called an alternative author where the vender is paid a premium from the agreement bought by the purchaserThere are two types of stock options A stock call option which allows the buyer the privilege however not the commitment to purchase stock A call alternative will increment in esteem when the fundamental stock value rises A stock put option which allows the purchaser the option to undercut stock A put choice will increment in esteem when the basic stock value drops b The advantages accumulating to the organization from giving investment opportunities happen in future periods as expanded incomes created by its choice persuaded and held workers The major coordinating standard of bookkeeping necessitates See Answer

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In: Accounting1. What is a stock option? Why are stock options costly forcompanies? 2. Why did...1. What is a stock option? Why are stock options costly forcompanies? 2. Why did CEO pay increased dramatically in the 1990s?3. What do you think about the Standard Setting Process of theAccounting Rules100 words each question