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A stock option gives its purchaser the right, but not the obligation, to make a stock transaction at a specified price.
There are two kinds, the Put and the Call.
A Put allows the buyer to sell (or "put") a specific number of shares of a specific stock for a specific price on or before a specific date. Say, 100 shares of Acme stock at $25.
A Call allows the buyer to purchase (or "call in") a specific number of shares of a specific stock for a specific price on or before a specific date. Say, 100 shares of Acme stock at $25.
When traders decide to buy one of these options, they look to an options exchange to find the "premium" they must pay to buy the option. The premium is just the payment to enter into the contract; if they buy the stock the premium doesn't apply to the sale price. (Example: if you buy Acme call options at $25 and paid a $1 premium per share, when you go to buy the stock it costs you $25 per share, not $24.)
What else can I help you with?
What are Cashless Stock Options?
Cashless stock options from your employer are an incentive for you to work harder. They are "giving" you stock in their company, which in turn makes you work harder to make more money.
Stock options used in accounting.?
I would think that you would include your stock options with your paper work for accounting so that they can get the actual numbers needed to do your taxes.
Where can my friend learn more about buy stock options?
There is so good supplement information about stock options here: http://canadianfinanceblog.com/how-stock-options-work/. There is also a good list regarding the subject here: http://gigaom.com/2011/06/05/5-mistakes-you-cant-afford-to-make-with-stock-options/.
Does Canada do investment stock options?
Other countries do investment stock options. Canada is one of them and among the easiest for English speakers to work with as we share a common language.
What is the purpose of free stock options?
Free stock options are often in the form of employee stock options, where an employee is offered stock in the company as a form of non-monetary compensation.
Are there several ameritrade stock options?
There are many ameritrade stock options. They will provide you with their various stock options through there site on the internet. Visit it for more information.
Where can one find information on stock trade options?
One can find information on stock trade options by going to a local stock broker. They will have great advice on everything about the stock trade options.
What are the differences between non-qualified stock options and incentive stock options?
Non-qualified stock options are taxed as ordinary income when exercised, while incentive stock options are taxed at a lower capital gains rate if certain conditions are met. Additionally, non-qualified stock options can be granted to any employee, while incentive stock options are typically reserved for key employees.
What are the UK's stock options?
To learn more about where UK stock options are you will have to check UK stock options on Wikipedia to see where and what they are so you can find out more information on where to find them
What is the best resource for beginners to learn about exercising stock options for dummies?
The best resource for beginners to learn about exercising stock options is the book "Stock Options For Dummies."
What is the difference between having stock options that are vested vs not vested?
Vested stock options are ones that you can exercise and buy stock with, while non-vested stock options cannot be used yet.
What is Exercise of Stock Options?
Stock options is when you have a right to buy (or sell, but most commonly buy) a stock at a predetermined price.Exercising a stock option means that you use it: You buy the stocks at the agreed price, and the options expire as you spent them on the stock purchase.
