Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

What is the "vesting period" of an ESOP?

Options:

The period during which employees can exercise their stock options

The period between the grant date and the vesting date

The period during which employees can sell their vested shares

The period between the grant date and the exercise date

Correct Answer:

The period between the grant date and the vesting date

Explanation:

The correct answer is option 2- The period between the grant date and the vesting date.

Vesting Period: The period between the grant date and the date on which all the specified vesting conditions of an Employees Stock Option Plan (ESOP) need to be satisfied.