Stock Option
A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.
In the U.K., it is known as a "share option". Investopedia Says:
American options can be exercised anytime between the date of purchase and the expiration date. European options may only be redeemed at the expiration date. Most exchange-traded stock options are American. Related Terms:
Accelerated Vesting
Call
Cheap Stock
Employee Stock Option - ESO
Index Option
Long-Term Equity Anticipation Securities - LEAPS
Option Chain
Options Contract
Put
Reprice
Spread
Strike Price
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