Basics Of Stock Grants Quiz

Basics Of Stock Grants Quiz

Test your basic knowledge of equity compensation.

Please answer the following 10 questions. This quiz is also a course of study. The answer key links to content on the topic for follow-up reading. For in-depth courses of study that offer CE credits, see the myStockOptions Learning Center.

1. Why do companies make stock grants to employees?

2. What documents should you see to understand the details of your stock grant?

3. What is an employee stock option?

4. What is a major difference between nonqualified stock options (NQSOs) and incentive stock options (ISOs)?

5. What is restricted stock?

6. What is an employee stock purchase plan?

7. What is one difference between restricted stock and restricted stock units (RSUs)?

8. What advantage does an employee stock purchase plan (ESPP) offer if it meets certain qualifications set by the Internal Revenue Code?

9. What IRS forms do you use to report capital gains on your tax return after you have sold company shares?

10. What is the tax rate for withholding on supplemental income from option exercises or restricted stock/RSU vesting?

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