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Backdating definition

Question
What is the definition of "backdating"? 
Answer
Backdating is defined as recording the effective date of an event as being prior to that event. Backdating stock options is an unethical and usually illegal ploy to take advantage of hindsight to set a more advantageous option price.

In most cases, backdating is unethical at best and illegal at worst. 
Brain Trust contributor: Author of Instant Profits: Making Your Business Pay
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