Backdating Option Grants

The possibility that a number of companies have been backdating stock option grants to increase their value was the subject of a Wall Street Journal feature article (subscrip. req’d) this past weekend. The article notes that the practice “while not illegal in itself, could result in false disclosure.” As a result, a company may be “vulnerable to an allegation of securities fraud.” For some blogosphere commentary, see this post from Truth on the Market.

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