SFinance glossary

Stock Options

Quick definition

The right to buy or sell shares.

Overview

Stock options are contracts giving the right to buy or sell shares at a set price before an expiry date, used for hedging or speculation.

Common uses

  • Investment strategies
  • Compensation plans
  • Risk management

Examples of use in small businesses

  • Rewarding employees
  • Protecting investments
  • Reducing market exposure
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