Investigation announced.Investigation Announced: The Securities and Exchange Commission has launched a formal investigation into options backdating Options backdating is the practice of granting an employee stock option that is dated prior to the date that the company actually granted the option. This practice raises a number of legal and accounting issues. at KB Home. The probe comes at a crucial time for the company, which is struggling to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective from a deep slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. in housing construction and trying to develop a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. plan. The investigation centers on options to former Chief Executive Bruce Karatz, who had collected more than $232 million over three years mostly from option grants. An internal review found instances of inflated awards to Karatz. |
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