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Why do corporations issue convertible securities? What are the advantages of using restricted stock to compensate employees? What are the disadvantages of using restricted stock

  • Why do corporations issue convertible securities?

  • What are the advantages of using restricted stock to compensate employees?

  • What are the disadvantages of using restricted stock to compensate employees?

  • What are some reasons that employees might prefer this type of compensation?

  • Skim through the major tenets of the PwC Stock-based compensation. In March 2016, the FASB issued Accounting Standards Update (ASU) 2016-09, CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which amends ASC 718. What are a few of the improvements to employee share-based payment accounting discussed in the report?

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