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Essay Galaxy - What Are Stock Options
You buy or trade stocks, bonds and mutual funds. Some investors use options on stocks or cash indexes to protect and insure the value of their portfolios. A major advantage of options is their flexibility.
You can protect stock holdings from a decline in market price
You can increase income against current stock holding
You can prepare to buy a stock at a lower price
You can position yourself for a big market move even when you don' t know which way prices will move
You can benefit from a stock price rise without incurring the cost of buying the stock outright
Stock options work much like stocks, options can be used to take a position on the market in an effort to capitalize on an upward or downward market move. Unlike stocks, however, options can provide an investor the benefits of leverage over a position in an indivi....
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Number Of Pages: 5 |
Number Of Words: 1300 |
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