1. How is compensation from the exercise of nonstatutory stock options retorted on Form W-2 if compensation is NOT recognized on the date of the grant? the spread between the:

Grant price of the stock over the fair market value at the time of vesting is shown as "V" in box 12.

Grant price of stock over the exercise price at the time of vesting is shown as a "V" in box 12

Fair market value of the stock over the exercise price at the time of exercise is shown as a "V" in box 12

Grant price of the stock over the exercise price at the time of exercise is shown as "V" in box 12

2. True of false. The purpose of a lockup provision is to keep individual investors from buying and selling stocks. When the lockup period expires, the share price commonly decreases significantly.

3. True or false. Initial public offerings (IPOs) perform poorly on the day following the IPO and well for periods of a year or longer after the IPO.