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When an option is backdated, the grant date is set earlier than the actual date it is granted, usually to benefit from a lower stock price.“Backdating is a sneaky way of turning an at-the-money option into an in-the-money option,” said Paula Todd, a principal at Towers Perrin.

One is where today they give an option that they say is backdated to the price 5 years ago.

Consider that a -in-the-money backdated option has an exercise price of .

Lie to market scans on a daily trading and is used for a distribution of losers.while completing my Masters of Science in Accounting & Taxation at the University of Hartford.

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