Stock option
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Stock option is a financial option that allows its owner to purchase a share of stock at a fixed price, called the strike price or the exercise price, no matter what the actual price of the stock is. Stock options always have an expiration date, after which they cannot be exercised.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Stock option. Allows its owner to purchase a share of stock at a fixed price, called the strike price or the exercise price, no matter what the actual price of the stock is. Stock options always have an expiration date, after which they cannot be exercised.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
