Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. His employer offers to let him convert a large portion of his salary into stock options. What is NOT a valid reason to turn down the stock offer?

Question

anonymous · Answer

Select the best answer from the choices provided.
Stocks with high returns have high volatility, and Ronald's company may not grow further.
Ronald may be taxed more for capital gains than he would be for employment income.
Stock options are illiquid, and Ronald may not be able to use them to pay for unexpected bills.
Ronald would be committing stock fraud if he exercises the options.

anonymous · Answer

@sylbot

anonymous · Answer

D. Stock options are completely legit compensation lol. only insider TRADING is bad.

anonymous · Answer

Ronald would be committing stock fraud if he exercises the options.

anonymous · Answer

That right ?

anonymous · Answer

@sylbot Its D  Ronald would be committing stock fraud if he exercises the options

anonymous · Answer

^^ yup thats what I put above.