Stock Option

Stock Option In share trading, it is the right (obtained at a small price) to buy or sell a share at a particular price within a particular period, in order to hedge the investment. In the corporate sphere stock options, by which one can buy a certain number of a company’s shares at a lower than market price, are sometimes offered to the company’s executives by way of reward. Foreign collaborators are sometimes offered this option, which when they take up, signals good progress made by the parent company.

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