0
What is the option to sell shares of stock at a specified time in the future called?
Wiki User
∙ 10y ago
It's actually called a call option. I will provide you with a definition I just found for this, and some additional tips on options trading.
- - - - -
The option to sell shares is a put. The option to buy them is a call.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What do you call a bond that can be changed into a specified number of shares of the issuers common stock?
Such a bond is an convertible bond.
What are strike price call put when it is comes to stock options?
From Investopedia.com:What Does Strike Price Mean? The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. For call options, the strike price is where the security can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold.The difference between the underlying security's current market price and the option's strike price represents the amount of profit per share gained upon the exercise or the sale of the option. This is true for options that are in the money; the maximum amount that can be lost is the premium paid.Also known as the "exercise price".What Does Call Mean?1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.2. An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time.What Does Put Mean? An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date.
What is a person who owns shares in a company called?
A person owning shares in a company is a shareholder.
Is it good to have stock shares in uranium?
Yes, if it is possible and you have money to buy uranium for the future.
What is preference share?
Preference shares are shares whose dividends are paid out first before ordinary shares dividends. They so called (preference shares) because they have 'preference' over ordinary shares for payment of dividends.
What have investors agreed to when they sign a contract guaranteeing them the option of selling shares of stocks at a specified price in the future?
spot option
What is the meaning of Employees stock option plan?
An Employee stock option is a call option on a company's own stock issued as a form of non-cash compensation. A stock option granted to specified employees of a company. ESOPs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. When the employees exercise their stock options, shares would be issued and thus, outstanding shares would increase.
How many shares in option contract 100 1000?
100 shares is typical.
What is it called when investors buy part ownership in a company in return for a share of future profits?
Buying stock (shares)
What is the meaning of share derivetives?
Derivative means how to minimize the risk of shares in stock market and how to earn more money. There are two types of derivatives. 1. Future 2. Option
How to trade in future and options?
Predicting the future is by no means an easy job. It requires considerable erudition, creativity, and wisdom. In the capital markets, investors try to gaze into the future by trading in derivatives (read: futures & options). Since its launch in June 2000 on the National Stock Exchange (NSE), the risky yet rewarding form of trading has gained fast popularity in India. At present, more than 30 lakh contracts valued at almost Rs 50,000 crore are traded on the NSE every single day. Here is a layman’s guide to trading in the world of F&Os, risks associated with them and precautions a first-time investor must take. Derivatives are products that obtain their value from a spot price, called the underlying. In India, Future and Option tips are the two popular derivatives instruments traded on stock exchange. While in a futures contract, you agree to buy or sell shares at a certain price in the future, the option contract gives you the right, but not an obligation, to buy (through a call option) or sell (through a put option) the underlying scrip at a specified date and at a specified price. To start trading in futures contract, you are required to place a certain percentage of the total contract as margin money. This feature of futures contract makes it a leveraged instrument since you can make a larger profit (or loss) with a comparatively small amount of capital. In India, futures contracts are available on equity stocks, indices, commodities and currency. In Future and option trading tips, you pay the premium for buying the rights to exercise your option. To take the buy or sell position on index and stock options, you are required to place a certain percentage of order value as margin money. An option can be a call option or a put option. A call option gives you a right to buy the asset at a given price or before a given future date. This given price is called strike price. Similarly, a put option gives you a right to sell the asset.
How many shares in one option contract?
Usually 100
What do you call a bond that can be changed into a specified number of shares of the issuers common stock?
Such a bond is an convertible bond.
What is a 100 shares of stock is called?
100 shares of stock is called a round lot.
What are all the ways to decrease the outstanding shares of a company?
A 'share buy back' is the main option in which a company can reduce the amount of outstanding shares. A company will purchase shares on the open market or work out a deal to buy shares from individual holders, and then retire the shares.
What is sell a covered call?
A covered call means that you own the underlying stock on the option you are selling. Say you own 100 shares of apple computer. You sell ONE call option which allows the buyer of the option to purchase the underlying 1oo shares of stock at the strike price. If the contract matures, you can then deliver the stock to the option buyer.
What are strike price call put when it is comes to stock options?
From Investopedia.com:What Does Strike Price Mean? The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. For call options, the strike price is where the security can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold.The difference between the underlying security's current market price and the option's strike price represents the amount of profit per share gained upon the exercise or the sale of the option. This is true for options that are in the money; the maximum amount that can be lost is the premium paid.Also known as the "exercise price".What Does Call Mean?1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.2. An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time.What Does Put Mean? An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date.
