This site uses cookies. By continuing, your consent is assumed. Learn more

124.9fm shares

Stock backdating definition

opinion

Backdating is the practice of marking a document, whether a check, contract or other legally binding document, with a date that is prior to what it should be. Backdating is usually disallowed and even can be illegal or fraudulent based on the situation.

There are certain situations, however, when backdating is acceptable; however, the parties Stock backdating definition must agree to it.

There was a spate of backdating stock options in the s, mostly at technology firms that rely heavily on stock options for executive compensation, but also at some companies not in the tech sector.

News feed