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Well a stock option loan is an derivative financial instrument that specifies a contract between two parties for a furture transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.

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Q: What is the point of a stock option loan?
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What does Convertible Loan Stock mean?

Common or preferred stock shares that are used as collateral to secure a loan from another party. The loan will earn a fixed interest rate, much like a standard loan, and can be secured or unsecured. A secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a pre-determined conversion rate, as with an irredeemable convertible unsecured loan stock(ICULS).


A stock option is a right to buy?

A stock CALL option is the right to buy. A stock PUT option is the right to sell. See related links for a nice resource and articles how options work. In the Derivatives markets, a stock option or "option" is a contract to buy or sell the underlying stock at a Strike price. This agreement allows you to pay a premium for this arrangement. See more answers to such questions at http://growthmag.com .


How can you use stock option quotes?

You can use stock option quotes to get an estimated value of stock you own. You can also use the quotes to find the current offering price of a particular stock you're interested in.


Examples of non stock and loan association?

Savings banks are examples of financial institutions that do not have a stock and loan association. They are limited by law to only provide saving options.


What are stock option charts for?

Stock option charts is for you to see how the stocks are doing each day. It helps you to decide wether or not to invest in them. Through this, you may get lucky.

Related questions

What is a stock option loan, and where can I get one?

A stock option loan is a loan where you can use stock you have already invested in as collateral for a loan, without giving up your investment in the long run. They can be obtained from banks and lenders or even online sites that are devoted to such loans.


What does Convertible Loan Stock mean?

Common or preferred stock shares that are used as collateral to secure a loan from another party. The loan will earn a fixed interest rate, much like a standard loan, and can be secured or unsecured. A secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a pre-determined conversion rate, as with an irredeemable convertible unsecured loan stock(ICULS).


What exactly is an incentive stock option?

A incentive stock option is a employee stock option that can only be done by employees. This option causes the employees to pay less on their income taxes.


What is the definition of a free stock option?

In short, a free stock option is just a stock option that is free. It gives you the right to buy something, regardless of whether you actually buy it or not.


What can effect valuation stock options?

A valuation stock option is an agreement made to offer the option to purchase the stock at a later date. The price of the option is based on the reference price and the value of the asset in which the stock is being purchased.


What is exercising a stock option?

Exercising options is done by the option buyer. If the buyer exercises a put, he is selling to the option writer the stock. If a call is being exercised, he is buying the stock from the writer.


What is excersing a option?

Exercising an option means exercising your rights to buy or sell the underlying asset in accordance to the parameters of the option. When you exercise a call option, you will get to buy the underlying stock at the strike price no matter what price the stock is trading at in the market. When you exercise a put option, you will get to sell the underlying stock at the strike price no matter what price the stock is selling at in the market. In both cases, the option you own disappears from your account.


Annual Stock Option Grants?

Annual Stock Option Grants Many companies issue annual stock option grants to their employees. Receiving a stream of stock options over a period of years can be an incredible benefit. Use this calculator to project how much a series of annual stock option grants could be worth to you.


Do you have stock option?

yes


What is a stock option and how do you use it?

Stock options allow you to buy stock in a company at a certain price, no matter what the price of the stock is currently. There is usually a time period associated with the offer. Sometimes this could be a sweet deal (if the stock is currently higher than the option) to worthless (if the option price is higher that the current stock price). You also don't have to have the funds to exercise the option, you can have a brokerage company exercise the option, then sell the stock at the higher price, with the difference being your profit.


A stock option is a right to buy?

A stock CALL option is the right to buy. A stock PUT option is the right to sell. See related links for a nice resource and articles how options work. In the Derivatives markets, a stock option or "option" is a contract to buy or sell the underlying stock at a Strike price. This agreement allows you to pay a premium for this arrangement. See more answers to such questions at http://growthmag.com .


How are stock leaps good for people and society?

Stock option leaps can be a problem to a certain point in contrast they can also help a hurting business. The longterm effects of a business varies greatly on the business itself.