Question

Stock options generally tend to have ______ timelines, so managers may be motivated to make short-term decisions that are likely to drive up stock prices even though a different decision might have been better for the firm's success. A. short B. long C. relatively short D. relatively longE. really long

Answer 1

C. relatively short

Step-by-step explanation:

A stock option is a right given to the investor to decide either to buy or sell the stock. It only gives him/her the right but not an obligation. The investor can buy or sell as per the agreement on the price and date. The bet is made on the rise and fall of the stock. The stock options plans of the employees are used by the companies to reward, attract or retain the employees.