Final answer:
The belief that restricted stock is superior to stock options is true, reflecting employers' preference for incentivizing employees with a direct stake in the company. Stocks can be purchased through exchanges or brokers, and a diversified portfolio is crucial for risk management. The decisions about stock issuance, dividends, and reinvestment are made by the governing body of a company, such as its board of directors.
Step-by-step explanation:
The statement that some employers believe that restricted stock is superior to stock options is True. Restricted stock awards are shares granted to executives and employees that come with certain conditions, often including a vesting period during which the shares cannot be sold. Such stock plans are designed to provide a direct stake in the company's success without the need to invest personal money, aligning the interests of the employees with those of the company and its shareholders.
When considering investments in the stock market, one can purchase stocks through exchanges, brokers, or sometimes directly from the company. It is important to diversify your portfolio to manage risk effectively because investment returns on different assets can vary and it's unlikely that all investments will perform poorly at the same time.
When it comes to decisions regarding the issuance of stock, payment of dividends, or reinvestment of profits, these are made by the appropriate governing body of a company, which could be the board of directors in the case of a public company or the owners of a private firm. Public companies make these decisions with an eye toward the interests of their shareholders and the regulatory requirements of the market they are listed on.