Home > Blossary: Options Terms and Definitions
Option is the right, but not the obligation, to buy or sell a specific amount of a given stock, commodity, currency, index, or debt, at a specified price during a specified period of time. This glossary will give you insights into the world of Option.

Category: Business

20 Terms

Created by: zzcgood

Number of Blossarys: 7

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Long-term option securities, often issued by the owner of an extractable resource such as precious metals, which gives the holder the right but not the obligation to acquire ownership of the ...

Domain: Banking; Category: Investment banking

A put or call that is written by an investor who does not own a position in the underlying asset that locks in the cost of delivering the shares if the option holder elects to exercise the option. ...

Domain: Banking; Category: Investment banking

An investment technique in which an investor sells shares short before actually borrowing the shares or before determining if shares can be borrowed. The practice is often illegal, but the SEC has ...

Domain: Banking; Category: Investment banking

Method of reducing risk by closing out existing positions as they approach maturity and replacing them with positions that have later maturity dates. This strategy is typically used with options that ...

Domain: Banking; Category: Investment banking

The situation that arises when a security is registered for trading on more than one exchange. Dual listings can lead to increased liquidity for the issue. Some securities listed on one exchange may ...

Domain: Banking; Category: Investment banking

A certificate which guarantees that the securities underlying an option contract are on deposit and will be delivered in the event that the option is exercised. An escrow receipt is issued by the ...

Domain: Banking; Category: Investment banking

An option in which the underlier is the common stock of a corporation, giving the holder the right to buy or sell its stock, at a specified price, by a specific date. also called stock option.

Domain: Banking; Category: Investment banking

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