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Granting options shortly before good news causes a share price rise.
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Spring Loading
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Setting the exercise price of stock options at the price on a date before the date they were granted.
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Backdating
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A grant of stock with restrictions. It cannot be sold until certain conditions are met, most often the lapse of a time period or meeting a performance goal.
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Restricted Stock
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Shares of company stock awarded after a fixed period of years if individual and company performance goals are met.
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Performance Shares
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The right to buy the company's stock at a fixed price in the future and under conditions determined by the board of directors.
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Stock Option
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A document sent to shareholders before the annual meeting that sets forth matters requiring their vote.
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Proxy Statement
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Organizational investors that buy shares in publicly traded corporations.
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Instiutional Investors
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An independent director who chairs regular board meetings of other independent directors.
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Lead Director
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Outside directors who do not have business dealings with a corporation that would impair their impartiality.
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Independent Directors
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Directors who are not employees of the company.
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Outside Directors
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Directors who are employees of the company.
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Inside Directors
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A federal statute designed to prevent financial fraud. It enacted new regulations on auditing, financial reporting, and legal compliance.
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Sarbanes-Oxley Act of 2002
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The legal duty of a representative to manage property in the interest of the owner.
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Fiduciary Responsibility
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