Which of the following statements about Employees Stock Option Plans (ESOPs) and Buy-Back of Securities is correct?
1
An ESOP is a tool used exclusively for raising capital from employees.
2
Buy-back of securities always leads to an increase in the company’s share capital.
3
ESOPs provide employees with the right to purchase shares at a future date at a predetermined price.
4
The buy-back of securities is usually conducted to dilute existing shareholders' equity.
5
ESOPs do not require any regulatory approval before being granted to employees.