LYCOS RETRIEVER
Options: Stock Options
built 193 days ago
Options are most frequently used by individual investors as either leverage or insurance. As leverage, options allow the holder to control equity in a limited capacity without paying the full price of buying shares up front. The difference can be invested elsewhere until the option is exercised. As insurance, options can protect against price fluctuations in the near term because they provide the right acquire the underlying stock at a fixed price for a limited time.
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Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period of time. Stock options are traded on a number of exchanges, including:
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Stock Options: The Backdating Games: "Following a yearlong investigation, it appears the Securities and Exchange Commission is finally beginning to crack down on companies with questionable policies governing stock-option grants. In November, management at Analog Devices Inc. agreed to pay $3 million to settle an SEC investigation into the company's handling of stock-option awards. And three senior managers at software maker Mercury Interactive Corp. recently resigned after an SEC probe uncovered problems with the reporting of stock-option issuances. Published accounts say the commission is looking at about a dozen companies, and appears to be zeroing in on the backdating of grants." [CFO]
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Options strategies offer such versatility that almost any kind of objective can be achieved using the right option strategy. Options can play a variety of roles in different portfolios, assisting you to reach your investment goals. For example, you could generate additional income from the stocks you own, or protect the value of your portfolio during a market downturn. The combinations and possibilities are literally endless. With that said, investing in options have substantial risk, and require account approval. Please read the Characteristics and Risks of Standardized Options prior to buying or selling options.
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Options are often regarded as mysterious and complicated, and many day traders have very little knowledge of what options are or how they are traded. In reality, options are very simple to understand, and can quickly be added to any day trader's list of markets. These articles will tell you what options are, and how they are traded, and cover both futures options and stock options. They will ... explain what the difference is between European and US style options.
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While eligible option holders will be able to receive cash for their options under the program, Comcast will incur no economic dilution from this offering. JPMorgan Chase Bank, Comcast's financial counterparty in connection with the stock option liquidity program, will ultimately be funding the cost of providing the program. This will occur through the simultaneous purchase by JPMorgan of new stock options from Comcast having similar economic terms as the options being purchased by Comcast from option holders. As a result, the same number of shares underlying options will remain outstanding upon completion of this one-time offer to non-employee option holders.
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