Final answer:
A vesting period is a specified period of time during which an employee must work for a company before they are fully entitled to the benefits of an employee stock option or retirement plan.
Step-by-step explanation:
A vesting period is a specified period of time during which an employee must work for a company before they are fully entitled to the benefits of an employee stock option or retirement plan. The purpose of a vesting period is to incentivize employees to remain with the company for a certain period of time. Once the vesting period is complete, the employee has full ownership of the option or plan.
For example, let's say a company offers its employees stock options with a 4-year vesting period. This means that the employee must work for the company for 4 years before they can exercise their stock options and take ownership of the shares.
Therefore, the true statement about vesting periods is that they are a specified period of time during which an employee must work for a company before they are fully entitled to the benefits of an employee stock option or retirement plan.