Definition of option backdating
Definition of option backdating - Free unscenserd xxx phone chat partylined
Additional paid-in capital can also include amounts recorded as expense for stock compensation and the excess tax benefits realized by the company for stock compensation.Administrator See “Plan Administrator.” Affiliate Under Rule 144, a person who directly or indirectly controls, is controlled by, or is under common control with the issuer.
Affiliates are subject to certain limitations as to volume and timing with respect to the sale of unregistered (restricted) stock of the issuer.Alternative Minimum Tax (AMT) In General: “Alternative” method of computing federal income tax that recaptures certain preferences and adjustments that are otherwise excluded from gross income.For ISO’s: The difference, if any, between the option price and the fair market value of the stock of the corporation on the date of exercise of an ISO is an AMT adjustment, and therefore – although it is otherwise excluded from gross income in the year of exercise – it will be added back when computing alternative minimum taxable income (AMTI).If an ISO produces AMT, it may result in a tax credit against ordinary income tax in future years.10% Owner In General: Beneficial owner of more than 10% of a class of equity securities of an issuer that is registered under Section 12 of the Exchange Act.For ISO’s: An employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of an employer corporation or of its parent or subsidiary corporation.
Under Section 422(b)(6) of the Internal Revenue Code, such an employee is not eligible to receive ISO unless, as provided in Section 422(c)(5) of the Internal Revenue Code, at the time such option is granted the option price is at least 110% of the fair market value of the company’s stock subject to the option and such option by its terms is not exercisable after the expiration of five years from the date such option is granted.Accelerated Attribution This expense attribution method treats each vesting increment as a separate award and recognizes a percentage of the expense for each increment simultaneously. Acceleration (of Vesting) With respect to the unvested shares or stock options, speeding up the vesting schedule (that is, decreasing the period over which vesting restrictions lapse or in the case of stock options when they can be exercised).Accounting Principles Board (APB) The predecessor to the FASB, the Accounting Principles Board was the source for generally accepted accounting principles for corporations that sell securities in the United States until 1973, when the SEC delegated this authority to the FASB.Additional Paid-In Capital (APIC) Capital contributed to a corporation by investors in excess of the par value of capital stock.In other words, any funds received from investors above the par value of the stock.For example, if an investor paid for common stock with a par value of $.01, .99 of the funds received would be credited to additional paid-in capital.