What Are Stock Options in Easy to Understand Terms?
People still get confused and feel the need to ask, “what are stock options?” A stock option is a contractual agreement that gives the holder the right, but not the obligation, to either sell or purchase a portion of the stock at a specified price for a certain period of time. Most companies usually give out store options as an incentive to their employees to further improve the performance of the company and eventually boost the share price. In the event that the share price has climbed over the price of the stock selection that has been agreed upon by the time the stock selection has been exercised, the employee can stand to make a substantial profit. The simplest way to answer the question, “what are stock options” is that it is a contract and stock selection traders sell and purchase contracts. So basically, stock selection trading is the business of purchasing and selling contracts. Read on to find out more about stock selection trading and to further illustrate the answer to “wha
