Question

When stock options are exercised they are converted into actual employer stock.

a. true
b. false

Answer 1

Stock options are converted into actual employer stock when exercised.

Step-by-step explanation:

When stock options are exercised, they are converted into actual employer stock.

The answer to the question is a. true. When an employee exercises their stock options, they have the right to purchase company stock at a specified price, known as the exercise price. Once the employee exercises the options, they receive and own actual shares of the employer's stock.