Financial Dictionary
Atlantic Financial
Atlantic Financial
Investment
Word
An Option represents the right to buy or sell a
security at a certain price. Options offer a good
deal of leverage because they enable buyers to have the profit potential of
purchasing several hundred shares for far less money than it would cost to
purchase the actual shares.
Options also offer a great deal of risk, as options only last for a
designated amount of time and then expire. If they expire, then the investment
in the options becomes valueless.
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Option
