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Investments glossary

Options Backdating


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Quotes of the day:

I\'m in favor of legalizing drugs. According to my values system, if people want to kill themselves, they have every right to do so. Most of the harm that comes from drugs is because they are illegal.

— Milton Friedman

Options backdating is the process of granting an option that is dated before the actual issuances of the option. In this way, the exercise price of the granted option can be set at a lower price than that of the company’s stock at the granting date. This process makes the granted option in the money and of value to the holder.


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