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Equity Option

Equity Option - an equity option which is also called a stock option is an underliner of a common stock giving the holder the right to buy or sell its stock. The option will list a specified date, and at a specified price. An Option in itself is a right but not an obligation to buy or sell a portion of a stock a debt, currency, index or commodity, during a certain timetable at a certain price. This option reduces the risk factor for the buyer in a down market where stock prices fall. If the holder (the buyer) exercises his option to buy, the seller (writer) is obligated to fulfill the holder's request.

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Recently, I had to do an essay writing on stock market and its functionalities. Since I am new to this field, I greatly struggled to come up with adequate information, until I landed here. Earlier, I did not even know about an equity option but this post provides sufficient knowledge about it and now I have enough to write.

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Definition of the Day Price Risk

Price Risk - The market price of stock can go up and down. A price risk is a risk coming from the possibility that the price of stock or physical commodities declines (goes down) The investment is worth less than what is paid for in the first place. Commodities are...

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