How compensation scheme is similar to issue of a call option on the stock of the firm. Introduction: Stock stands to be the general term which is taken into consideration for describing the company's ownership certificates. On the other hand share refers to the company's stock certificate. When a share of a particular company is held by an investor, he is known as a shareholder.

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Chapter 15, Problem 21PS

Summary Introduction

To determine:

How compensation scheme is similar to issue of a call option on the stock of the firm.

Introduction:

Stock stands to be the general term which is taken into consideration for describing the company's ownership certificates. On the other hand share refers to the company's stock certificate. When a share of a particular company is held by an investor, he is known as a shareholder.

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