Meaning WRITING PUTS TO ACQUIRE STOCK: Selling a put option at an exercise price that would represent a good investment by an option writer who believes a stock's value will fall, so that the writer cannot lose. If the stock price unexpectedly goes up, the option will not be exercised and the writer is at least ahead the amount of the premium received. If the stock loses value, as expected, the option will be exercised, and the writer has the stock at what he had earlier decided was originally a good buy, and he has the premium income in addition
More terms such as Writing puts to acquire stock in Dictionary W.
- Definition Williams Act:
- Examples Federal legislation enacted in 1968 (and now constituting Rules 13d and 14d of the Security Exchange Act of 1934) that imposes requirements with respect to public tender offers writing puts to acquire stock definition.
- Definition Whipsawed:
- Examples Buying stocks just before prices fall and selling stocks just before prices rise in a volatile market, often as the result of misleading signals writing puts to acquire stock explain.
- Definition Wraparound Mortgage:
- Examples that leaves the original mortgage in force. The wraparound mortgage is held by the lending institution as security for the total mortgage debt. The borrower makes payments on both loans to the writing puts to acquire stock what is.
- Definition Weighted Average Cost Of Capital (WACC):
- Examples a portfolio of all a firm's securities. Used as a hurdle rate for capital investment. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the writing puts to acquire stock meaning.
- Definition Working Control:
- Examples Control of a corporation by a shareholder or shareholders having less than 51% voting interest because of the wide dispersion of share ownership writing puts to acquire stock abbreviation.
