This paper reviews the evolution of executive stock option plans and the parallel tax treatment to compare their relative economic importance. On the incentive side, if the option plans were the most efficient means to provide the appropriate managerial incentives, they would have been adopted...

Underwriting costs for complex securities can vary with their special tax treatment, conversion features, bond put options, and structural complexity. Securities with one or more of these features are more difficult to value. These complexities must be communicated to prospective investors by...