Stock options are contracts that represent the right to buy (or sell) shares of the underlying equity at a predetermined price, and by a predetermined date. Stock options are traded in units ...

This is simple arithmetic: options are cheaper to buy than the stocks from which they derive their value. If a stock is trading at $50 per share, it would cost you $5,000 to buy 100 shares.

Employers offer many forms of compensation besides cash, with employee stock options being a popular choice. Instead of issuing shares directly, employee stock options allow workers to purchase ...

learn these terms. Stock option: The opportunity to buy company stocks after a certain date. Note that different stock options, such as incentive stock options (ISOs) and nonqualified stock ...