Options Trading Tutorial

question about backdating stock options?

what is the accounting issue( how does it have an impact on accounting) and ethical issue with it? how are the stakeholders( shareholders, managers, employess) likely to be affected by it? Thank you.

Public Comments

1. It's fraud, that's the "issue"! The exerciser is effectively manipulating the spread between the option price and the exercised option value, thus "controlling" the amount of capital gain.