Question 9 (1.5 points)

The following is true of stock given to an employee as compensation:

Question 9 options:

1)	Stock which is not subject to a substantial risk of forfeiture triggers immediate compensation income to the employee.

2)	Stock which is subject to a substantial risk of forfeiture triggers compensation income to the employee only when the stock is sold.

3)	The employee may not elect to treat the spread between the fair market value of the stock (treated as though no restrictions exist) and the amount paid for it as compensation income at the time of grant.

4)	None of the above.