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Do listed options impact the capital structure of a corporation?

User Schuyler
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Final answer:

Yes, listed options can impact the capital structure of a corporation. When option holders exercise their options, it can affect the ownership and equity of existing shareholders, potentially influencing the capital structure.

Step-by-step explanation:

Yes, listed options can impact the capital structure of a corporation. When a corporation issues stock options, it gives the option holders the right to buy a certain number of shares at a specified price within a specified period of time. If the option holders exercise their options, they will acquire additional shares of the corporation's stock, which can affect the ownership and equity of existing shareholders, and therefore influence the capital structure of the corporation.

For example, if a corporation has issued stock options to employees, and those employees choose to exercise their options and buy shares, the number of outstanding shares will increase, potentially diluting the ownership of existing shareholders. This can result in a change in the capital structure of the corporation.

User Zudwa
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