Backdating insurance definition relationship advice dating a
In the context of mutual funds, a feature allowing fundholders to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge, e.g.
Coverage procured for claims after a loss event has actually happened.
In our example, backdating the options is the same as giving John Doe a check for ,000 -- without recording that ,000 on the within two business days.
In addition to being illegal, backdating isn't always a sure thing.
He pays the per share exercise price and can turn around and sell those shares on the exchange for each, netting a profit of per share, or ,000.
Granting stock options to employees is a generally accepted and perfectly legal form of compensating employees. Critics of backdating argue that the practice is difficult to detect and thus encourages boards and executives to use it to synthesize more creative compensation packages.