Meaning OPTION: Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Buyers of call options bet that a stock will be worth more than the price set by the option (the strike price), plus the price they pay for the option itself. Buyers of put options bet that the stock's price will drop below the price set by the option. An option is part of a class of securities called derivatives, which means these securities derive their value from the worth of an underlying investment
More terms such as Option in Dictionary O.
- Definition Originator:
- Examples loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is option definition.
- Definition Other Capital:
- Examples payments, other capital is a residual category that groups all the capital transactions that have not been included in direct investment, portfolio investment, and reserves categories. It is divided option explain.
- Definition One-Decision Stock:
- Examples A quality stock that is not actively traded, but rather held for its growth potential option what is.
- Definition Operating Rate:
- Examples The percentage of total production capacity of a company, industry, or country that is being used option meaning.
- Definition Omitted Dividend:
- Examples A dividend that was scheduled to be declared, but that is not voted by the board of directors probably because the company is experiencing financial difficulties option abbreviation.
