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CIMAPRO19-P03-1 Exam - Topic 4 Question 11 Discussion

Company directors who exercise executive share options generally resell the shares immediately, rather than holding them Which of the following best explains this behavior?
A) The directors receive a risk-free gain
B) Shareholders become nervous when the directors hold shares
C) The shares are out of the money at the exercise date
D) It is a conflict of interest for directors to be shareholders.

CIMAPRO19-P03-1 Exam - Topic 4 Question 11 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam
Question #: 11
Topic #: 4
[All CIMAPRO19-P03-1 Questions]

Company directors who exercise executive share options generally resell the shares immediately, rather than holding them Which of the following best explains this behavior?

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Suggested Answer: A

by Penney at May 04, 2022, 04:18 AM

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Brande
9 months ago
Holding shares can make directors look less trustworthy.
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Dong
9 months ago
Wait, are they really just selling immediately? Seems off.
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Pedro
9 months ago
I think shareholders prefer directors to have some skin in the game.
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Nydia
9 months ago
Totally agree, it's a risk-free gain!
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Carisa
9 months ago
Directors cash in for a guaranteed profit.
upvoted 0 times
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Sharmaine
10 months ago
I'm leaning towards the master-detail relationship approach as well. It should give us the desired functionality without too much custom development.
upvoted 0 times
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Mariann
10 months ago
Okay, let's see here. The question is asking us to define the two required functions, so I'll need to analyze the code and the function descriptions to figure out the right parameters and return types.
upvoted 0 times
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