What is a stock What is an option stock

Updated on Financial 2024-07-16
9 answers
  1. Anonymous users2024-02-12

    Original shares: This is not a legal concept, many people will call it the original shares when buying the shares issued by the company to be listed before listing, because this **share** does not reflect the value-added given by the liquidity of the secondary market, and the pricing basis is very "primitive". In short, equity (limited liability company) and shares (shares) are a kind of ownership rights enjoyed by shareholders based on shareholder qualifications (for the sake of simplicity, they are all called equity).

    To put it simply, getting the equity means that you are already a shareholder of the company.

    Option shares: It is a right granted by the company to the incentive object the right to purchase a certain number of shares of the company within a certain period of time in the future with predetermined ** and conditions, and this right may be exercised after the company is listed or before the listing. To put it simply, getting an option only indicates that it may only be a shareholder of the company.

    The original shares were issued prior to the company's listing**. Option, also known as option, is a derivative financial instrument produced on the basis of **.

    In essence, options are essentially pricing rights and obligations separately in the financial field, so that the transferee of the right can exercise its rights within a specified time as to whether or not to conduct a transaction, and the obligated party must perform it. In the trading of options, the party who buys the option is called the buyer, and the party who buys the option is called the seller; The buyer is the assignee of the rights, and the seller is the obligor who must perform the buyer's rights.

  2. Anonymous users2024-02-11

    An option is an option that allows you to pay a premium and get the right to sell at a strike price** at a certain time in the future, without the corresponding obligation! An option is an option with an underlying option.

  3. Anonymous users2024-02-10

    1. The concept is completely different.

    As an equity incentive method, option refers to an expectation right granted by the enterprise to the incentive object, and the incentive object can purchase a certain number of enterprises in the future with a fixed ** determined in advance within the specified number of years. The core of its incentive is that he can obtain ** option free of charge, which can enable him to buy ** growth ** that has been developed for several years at a relatively low price, so as to share the benefits of the company's development. Of course, if the **** shrinks, the incentive object will give up exercising, so as to avoid losses.

    Futures shares refer to the number of shares to be transferred and the expected shares obtained by the transferee employees from the date of signing the agreement for the purpose of motivating employees. During the exercise of the futures shares, the futures equity holder enjoys the right to benefit from the transferred futures shares, but the ownership and voting rights of the shares are still enjoyed by the original shareholders of the company. The core incentive recipients of its incentives can enjoy the right to income as soon as possible, but the income is closely linked to the performance appraisal, and there is no waiver of exercising the right.

    2. The core and role of incentives are different. The core of the option incentive is that he can obtain the **option free of charge, which can enable him to buy the **growth of the company for several years at the current relatively low price**, so as to share the benefits of the company's development. Of course, if the **** shrinks, the incentive object will give up exercising, so as to avoid losses. The core incentive object of the stock incentive can enjoy the right to income as soon as possible, but the income is closely linked to the performance appraisal, and there is no waiver of exercising the right.

    3. **Option is generally a right without obligation. No obligation means that once the incentive object is given an option, the incentive object does not need to pay consideration for the option, and will only pay for the exercise of the option when it is exercised in the future, and of course it can also give up the exercise; Futures stock incentives are generally obligatory rights, that is, the incentive recipient generally needs to pay consideration for obtaining futures stocks, of course, in practice, in order to increase the incentive range, the method of free rewards without consideration can also be adopted.

    4. **Option holders only have the right to expect to cash out the actual shares, and have no other rights to shares. Holders of futures shares are different in that they enjoy rights and interests such as the right to income from shares, but they do not enjoy the ownership and voting rights of shares.

    5. There is no necessary connection between option incentives and the company's performance, because the company's performance is not necessarily the reason for the growth of performance. The futures stock incentive is inevitably related to the company's performance and the performance appraisal of the incentive object, and the company can also choose whether the futures stock can be converted into real shares, as well as the conditions for transformation.

  4. Anonymous users2024-02-09

    Option stocks, also known as ** options, are the rights given by the company to its operators to purchase a certain company in accordance with a certain established ** within a certain period of time.

    Generally, ** options have the following significant characteristics:

    First, like ordinary options, ** options are also a right, not an obligation, and the operator can decide whether to buy the company's ** according to the situation;

    Second, this right is given by the company to its operator free of charge, that is, the operator obtains this right according to the agreement during the employment period, and a right itself means an "intrinsic value", and the intrinsic value of an option is expressed as its "option price";

    Third, although the options and rights are given by the company free of charge, the company that is connected with such rights is not, that is, the operator is required to buy them with money.

  5. Anonymous users2024-02-08

    An option is a contract that originated in the American and European markets in the late eighteenth century that gives the holder the right to buy or sell an asset at a fixed rate at a specific date or at any time prior to that date.

  6. Anonymous users2024-02-07

    Option stocks are a more flexible investment tool that allows investors to obtain leveraged investment in ** at a relatively low cost, and can be used for short-term trading and arbitrage by buying option stocks. However, option stocks are also riskier because their value and price profile are affected by a variety of factors, and the option must be exercised within a specified period of time or the right will lapse. As a result, options stocks are often suitable for investors with a higher risk tolerance who want to earn high returns through short-term investments.

    Option stocks are often considered a derivative, so their value and value can be affected by a variety of factors, including market volatility, remaining maturity, interest rates, and more.

  7. Anonymous users2024-02-06

    Option stock is the right given by the company to its operators to purchase a certain company according to a certain period of time. What the company gives to its operators is neither cash remuneration nor ** itself, but a right, and the operator can buy the company ** on some preferential terms.

    Specifically, with the approval of the company's general meeting of shareholders, the stock options of the issued and unlisted ordinary shares ** reserved or stockpiled in the company (some companies buy the company ** by way of market repurchase) are granted to the company's senior managers, scientific and technological backbones or ordinary employees with significant contributions, so as to maximize their enthusiasm for production and operation and innovative spirit.

    The option system stipulates that the above-mentioned personnel can purchase the enterprise according to the predetermined ** during the specified period. The difference between the purchase price of the purchase at the time of purchase and the market price of the purchase at the time of the purchase is formed by the purchaser, that is, the option owner, and in fact, the option income is also the value of the stock option.

  8. Anonymous users2024-02-05

    First, like ordinary options, ** options are also a right, not an obligation, and the operator can decide whether to buy or not according to the situation.

    Division's **; Second, this right is given by the company to its operator free of charge, that is, the operator obtains it according to the agreement during the employment period.

    This right, and a right itself means an "intrinsic value", and the intrinsic value of an option is expressed as its "option price"; Clause.

    Third, although the options and rights are given by the company free of charge, the company that is connected with this right is not, that is, the company is wanted.

    The operator buys it with money.

    A share option is a share of ownership of an asset of a business granted based on the contribution of the job role, and can be transferred after the restricted conditions are met.

    Swap for cash benefits. It serves two purposes:

    1.Diversify the remuneration of employees for their contributions. It can directly play a role in reducing the pressure on the cash payment of labor remuneration of enterprise employees and make contributions.

    The payment of labor remuneration with large cash payment is shifted back in time, so that enterprises can have sufficient self-accumulation capacity and achieve development.

    2.Close the relationship between the interests of the enterprise organization and the individual employees. It links the efforts and contributions of employees to the long-term development of the enterprise.

    It plays a role in locking the hearts of employees, increasing the enthusiasm of employees, and reducing unnecessary losses caused by employee turnover to the development of enterprises.

  9. Anonymous users2024-02-04

    For example, the company promises you in the option contract that two years later, you can subscribe to the company's ** within 1000 shares with 1 yuan and 1 share, then the time of these two years is the period of the option, and the right to subscribe to the company with 1 yuan and 1 share is the right to the option, which is the option.

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