How does options backdating work?
Why is it illegal? Who has been accused of engaging in it?
Best Answer
546 points
warren answered 2 years ago …
Options are given to an employee and the date of issue hence share price, is marked back to a date when the share price was lower. This guarantees a profit and helps to entice talent to the company.
Not neccessarily ethical but a good strategy to attracet talent.
Answers
546 points
warren answered 2 years ago …
It's illegal because it's like knowing the outcome of a game and then betting on the game. Apple has done it and broadcom, untied health, comvrse and many others. These are just the high profile ones.
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265 points
MaverickInvestor answered 2 years ago …
So where can I get some backdated options? Sounds like a game I'd like to play!
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