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Stock Options and Futures

Options are the right to buy or sell a security at a set price over a specified period of time. Futures are contracts to buy or sell assets at a set price on a predetermined future date.

2,089 Questions
Business & Finance
Stock Market
Stock Options and Futures
Stocks

What is contra in stock trading?

When you buy stocks, the actual stocks get delivered to your trading account only after 3 business days and you pay for the stocks only when they are delivered BUT you are already the owner of the stocks BEFORE they are delivered or PAID FOR. As such, if you sell those stocks within that 3 days, a cash difference of your profit or loss will result in your account without ever owning the stock or paying for them. This is known as stock contra.

364365366
Resume Writing
Companies
Stock Options and Futures

How do you list a previous employer on your resume when the company has changed names?

I don't believe there is a set style for this. I suggest just putting something like "[ABC merged with EFG in 19XX to form XYZ]" under the original company name.

Good luck!

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Stock Options and Futures

What statement best explains what a futures contract is?

A futures contract is a contract setting the price and date for a commodity purchase.

198199200
Stock Options and Futures

Advantages of put and call option?

To every buyer in stock market , there is a seller. So lets break this into 2 parts

1. Advantages for buying put and call options - Option buying means setting limited loss and unlimited profit. For example - if currently index is 1000 and you have bought 1100 call @ $34, your profit will be unlimited over and above 1100 but your loss is limted i.e $34 if it expires the series below 1100. So you pay a premium of $34 to buy the call. Buying calls and puts are beneficial if you anticipate sharp move in either direction.

2. Advantage of selling put and call options - Option selling means setting unlimited loss and limited profit. For example - if currently index is 1000 and you have sold 1100 call @ $34, your loss will be unlimited over and above 1100 but your profit is limted i.e $34 if it expires the series below 1100. So you get a premium of $34 to sell the call. Selling calls and puts are beneficial if you expect a range bound move so that you can eat away premium due to time decay.

153154155
Investment Banking
Humor & Amusement
Stock Options and Futures

What is the fullform of smc?

smat money credit

139140141
Investing and Financial Markets
Stock Options and Futures
Stocks
Wills

Which US banks participate in the medallion guarantee program?

There are numerous locations that participate in the program but typically you have to be a bank customer to acquire a medallion guaranteed signature. One exception is Bank of America. Bank of America will provide the medallion guarnateed stamp for non-customers, but they do have to obtain information before providing the service. I'd suggest calling the branch you intend to visit before going just to be sure they provide this service, as it's typically just larger or main branches that will do it.

585960
Business Law
Stock Options and Futures
Stocks

How do you research old stock certificates?

Here are a number of suggestions from various WikiAnswer contributors:

To do this in the most inexpensive manner, you should first check and see if this stock certificate has been cancelled. Normally the stock will have a cancellation or redeemed date and/or company/representative firm/bank cancellation stamp. Often this is also done by chipping the certificate and putting small holes in the paper to spell redeemed or cancelled or some other related word. Then, you should find someone who buys and sells collectible stock certificates and see if they have ever sold these OR ask how much they will sell one to you PRIOR to telling them you have one.

You can also research the company name on the certificate through the New York Stock Exchange information service or the NASDAQ service.

Open a brokerage account and deposit the certificates. The brokers will run the CUSIP and figure out if they belong to a renamed/merged company, whether they have split or conglomerated, and if they're still traded.

You can contact the state that your certificate was incorporated in, each state has a department that handles such things. This site has each state's department contact information listed. See Sources and Related Links, further down this page, for more information about that.

Databases/directories of corporate changes can also be useful in determining the value of your shares. Reasonably priced databases and those available to the public that is. See Sources and Related Links for more information.

Most local business libraries could help you out. The next step is then to contact either the transfer agent (found on the stock certificate) just google the name and you should have a number to call. They will have all information as to what happened to the company, if anything was left for investors etc.. if by any chance the companies transfer agent has also gone by the wind.

You might want to go for professional help. A broker or other financial advisor can help.

Alternatively, you can go with an online research firm to evaluate the position. It might be impossible even if you were to spend countless hours of effort to get near the sum of information provided by professional help, such as pinpoint financial information, stellar histories and values. There are also excellent old stock research services like OldCompany.com and Scripophily.com that can tell you what happened to the company for a small fee. They can also tell you if the certificate has any collectible value. See Scripophily.net for listing of over 18,000 certificates.

Be careful with some old stock research services that are not members of the Better Business Bureau, have little business experience and claim to be experts in collectible stock and bond certificates. Many of these so called experts have little experience in determining whether your old company stock has real value as a collectible or redeemable security. Always check to see what the Better Business Bureau says about them.

See Sources and Related Links for more information.

919293
Index Funds and ETFs
IPOs
Stock Options and Futures

What is the option to sell shares of stock at a specified time in the future called?

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.

119120121
Mathematical Finance
Stock Options and Futures

How do you hedge a short call option position?

You could either buy a higher call and create a credit spread to hedge the short call option

OR

Buy some of the stock and use it like a covered call strategy.

117118119
Mathematical Finance
Stock Options and Futures
Las Vegas

What is the vega of an option?

Option Vega is the change in the value of an option for a 1-percentage point increase in implied volatility, i.e. the first derivative of the option price with respect to volatility.

113114115
Agriculture
Stock Options and Futures
Grains
Wheat

How many bushels of wheat are in 1 futures contract?

5,000 bushels

101102103
Investing and Financial Markets
Stock Market
Stock Options and Futures
Stocks

What is Sensex in the stock market?

Sensex refers to "Sensitivity Index" and is generally associated with the stock market indices. There are currently two major stock exchanges in India, The Bombay Stock exchange (BSE) and The National Stock Exchange (NSE).

The BSE Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE.

If the Sensex goes up, it means that the prices of the stocks of most of the companies under the BSE Sensex (30 companies) have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.

Today the BSE Sensex constitutes of the following companies:

Company Name (Industry)

  1. ACC (Cement - Major)
  2. Bharti Airtel (Telecommunications - Service)
  3. BHEL (Engineering - Heavy)
  4. DLF (Construction & Contracting - Real Estate)
  5. Grasim (Diversified)
  6. HDFC Bank (Banks - Private Sector)
  7. HDFC (Finance - Housing)
  8. Hindalco (Aluminium)
  9. Hindustan Unilever Ltd (Personal Care)
  10. ICICI Bank (Banks - Private Sector)
  11. Infosys Ltd (Computers - Software)
  12. ITC Ltd(Cigarettes)
  13. Jaiprakash Associates (Construction, Real Estate, Cement etc.)
  14. Larsen & Toubro (Construction, Diversified)
  15. Mahindra and Mahindra (Auto - Cars & Jeeps)
  16. Maruti Suzuki (Auto - Cars & Jeeps)
  17. NTPC (Power - Generation/Distribution)
  18. ONGC (Oil Drilling And Exploration)
  19. Ranbaxy Labs (Pharmaceuticals)
  20. Reliance Communications (Telecommunications - Service)
  21. Reliance Industries Limited (Diversified)
  22. Reliance Infrastructure (Power - Generation/Distribution)
  23. State Bank of India (Banks - Public Sector)
  24. Sterlite Industries (Metals - Non Ferrous)
  25. Sun Pharma (Pharmaceuticals)
  26. Tata Motors (Auto - LCVs/HCVs)
109110111
Repossession
Stock Options and Futures
The Difference Between

What options do you have when threatened with repo?

Lance, you can take the car back to them or you let them come get it. Its not a hard decision. Probably, you are 60 days behind and what do YOU think the odds are of you "catching up"? You know your financial picture better than anyone else. make a realistic choice and deal with now. Good Luck

107108109
Stock Market
Stock Options and Futures
Stocks

How are companies listed in BSE and NSE?

how the company listed in BSE/NSE

272829
Symbols for Stocks Mutual Funds and ETFs
Stock Options and Futures
Stocks

What does the fifth letter of ticker symbol mean?

"Definitions For The Fifth Letter Of Ticker Symbols

Have you ever wondered what that fifth letter at the end of the stock symbol is? It signifies that the issuer may have additional circumstances involved with the stock. Most recognizable is the infamous "E".

Complete "Letter" list enclosed below. You may want to print it out for your own reference.

The Eligibility Rule protects investors by ensuring that they have access to companies current financial information when considering investments in OTCBB-eligible securities.

Nasdaq will continue to monitor the filing status of all OTCBB issuers. In the event of a filing delinquency, Nasdaq will append the trading symbol(s) of the delinquent issuer's security with an "E". The fifth character "E" will be removed from the symbol once Nasdaq receives notification that the security meets the requirements of the Eligibility Rule. After 30 days (60 days for non-SEC filers), if Nasdaq has not been notified that the appropriate filing has been made with the issuer's regulatory authority, the issuer's security will be removed from the OTCBB.

Code: Meaning

A: Class A.

B: Class B.

C: Exempt from Nasdaq listing requirements for a limited period of time.

D: A new issue of an existing stock. (Often the result of a reverse split.)

E: Delinquent in required filings with the SEC as determined by the NASD.

F: Foreign.

G: First Convertible Bond.

H: Second Convertible Bond, same company.

I: Third Convertible Bond, same company.

J: Voting.

K Non-voting.

L: Miscellaneous situations such as foreign preferred, preferred when-issued, a second class of units, a third class of warrants, or a sixth class of preferred stock.

M: Fourth preferred, same company.

N: Third preferred, same company.

O: Second preferred, same company.

P: First preferred.

Q: In bankruptcy proceedings.

R: Rights.

S: Beneficial interest.

T: With warrants or with rights.

U: Units.

V: When-issued and when-distributed.

W: Warrants.

X: Mutual Fund.

Y: ADR (American Depositary Receipts).

Z: Miscellaneous situations such as a second class of warrants, a fifth class of preferred stock, a stub, a foreign preferred when-issued, or any unit, receipt, or certificate representing a limited partnership interest."

858687
Long Term Care Insurance
Life Insurance
Stock Options and Futures

What are non forfeiture options?

Hi,

I have some few knowledge regarding this nonforfeiture. I had only known that Standard life insurance and long-term care insurance may have nonforfeiture clauses. The clause may involve returning some portion of the total premiums paid, the cash surrender value of the policy, or a reduced benefit based upon premiums paid before the policy lapsed.

If you have any attorney issues regarding this then Law Office of Sebastian Ohanian is one of the best options for you.

Thank you

596061
Investing and Financial Markets
Business Law
Stock Market
Stock Options and Futures

How long does a company have before they have to distribute your Employee Stock Option plan?

The stock option plan does not get distributed. You have to take action to buy or sell your options. If you sell your options, you will get the amount that is the difference between what your option amount was for and what the stock sells for. For instance if you have an $8 stock option, sell it for $28, you will get a check for $20. This is per stock. This counts as income, so make sure you have taxes withheld if it is a large amount. You usually have 90 days to make the sale.

777879
Investing and Financial Markets
Stock Market
Stock Options and Futures

What is stock options backdating?

Stock options give employees the option to buy stock at a predetermined price. Usually, when a company grants stock options, the predetermined price refers to a future price, and the future price is usually higher than the current price. For example, if your stock is trading at around $20/share, you might get 1000 options with a strike price of $22/share. No one would exercise their options (or buy this stock) right away, because why would you want to pay $22 for the stock when you can get it for $20? But, if the stock goes up to $30, then you get a good deal when you exercise your options: you get to buy those same shares at a discount, for $22/share. In the stock options backdating scandal, companies looked at their stocks' historical prices, found the low point, and granted options based on that date. Since the stock had gone up since then (i.e., the stock is no longer at the low point), this backdating automatically guaranteed these employees made money. In other words, say that the company stock is trading around $20 today and has been at that level for a while, but a year ago it dropped--just for a day--to $15 before rising back to $20 the next day. If your company illegally backdated stock options, it would grant options today for $15, but backdate them to make it look like the options were granted before the temporary drop. That way, employees could take advantage of the stocks' gain from $15 to $20. This backdating, while profitable, is illegal because options aren't meant to be a guarantee of profits but an incentive to work hard to improve the company and, hence, its stock price. Backdating is cheating, making it look like stock options were granted in the past by changing the date.

717273
Symbols for Stocks Mutual Funds and ETFs
Stock Options and Futures
DirecTV

What is the ticker symbol for MassMutual Financial Group?

MassMutual Financial Group is a private company and as such does not have a publicly-traded stock.

757677
Symbols for Stocks Mutual Funds and ETFs
Stock Options and Futures
Stocks
Ku Klux Klan

What does the ticker symbol KKK stand for?

koo koo koo

717273
Investing and Financial Markets
Economics
Stock Market
Stock Options and Futures

Employee stock option in order to remove Principal-agent problem?

An employee stock option has to be linked with other stock holders, directors and employees getting higher benefits. In Pakistan, public stock holders in textile and some of the other industry have not been given any bonus or bonus shares since last 2 decades and many firms vanished. Distribution of over Rs 100 billion among employees free of any conditions is sinking of public taxes without getting any benefits. Employee's stock option might be very good if it is linked with production or social welfare or investment in easy installments or to remove principal agent problem

697071
Investing and Financial Markets
Business Accounting and Bookkeeping
Stock Options and Futures

What is the difference between options and forward contract?

A forward contract is an agreement between two parties to buy or sell an asset at a certain future time for a certain price agreed today. An option is an agreement between two parties for the option to buy or sell an asset at a certain future time for a certain price agreed today. The main difference is that a forward contract has to happen while an option may or may not happen depending on the value of the asset compared to the agreed price

333435
Stock Options and Futures
Example Sentences
Great Pyramid of Giza

Where is nse situated?

New Delhi

It is wrong. As per NSE (National Stock Exchange) website, the Corporate Office of NSE is situated at Mumbai and it has a branch at New Delhi.

697071
Business Law
Stock Options and Futures
Stocks

Which UK banks participate in the Medallion Guarantee scheme?

HSBC do

676869

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