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What is the difference between a shareholder and option holder?

2007-02-13 22:35:22 · 6 answers · asked by frozenbrew 4 in Business & Finance Investing

6 answers

A shareholder owns shares of stock in a company. Each share of stock represents ownership of a small portion of the company.

An option holder owns options. There are two types of options. A call option gives a person the right (but not the obligation) to buy a set amount of something for a fixed period of time. A put option gives a person the right (but not the obligation) to sell a set amount of something for a fixed period of time.

The "something" for options may be 100 shares of a stock or a futures contract for a commodity.

You can find out the basics about options at

http://www.cboe.com/LearnCenter/Concepts/default.aspx

2007-02-14 02:32:27 · answer #1 · answered by zman492 7 · 0 0

A Shareholder is one who owns certain number of shares or part ownership of a company therewith.
An Option holder is one who contracts to buy if call option or contracts to sell if put option certain quantities of shares at a certain date in future called the expiration day and for a certain price called the strike price.

2007-02-14 02:56:00 · answer #2 · answered by Mathew C 5 · 0 0

In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options https://tr.im/qGPkM
An option has only two outcomes (hence the name “binary” options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.

2016-05-02 14:18:40 · answer #3 · answered by ? 3 · 0 0

Shareholder is a person who owns shares of a particular company and holds ownership of a particular company. In case of options, there are two options. Call options and put options. In case of call option buyer, profit is unlimited and loss is limited to premium only in the case of spot is high and strike low.In case of call option seller the profit is limited to premium loss is unlimited. If in case of put option, the buyer will exercise option,only in case of spot is low and strike is high. In case of options,buyer has the right but not obligation to exercise the option and seller has the obligation to exercise the option.

2007-02-16 20:07:38 · answer #4 · answered by sindhukannankattil 2 · 0 0

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