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Tip of the Day Pay All Credit Card Balances In Full Each Month

Pay All Credit Card Balances In Full Each Month - It is necessary to pay all credit card balances in full each month to prevent paying extremely high interest rates...

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Exercise An Option

Definition: When you exercise an option, you are converting it into shares of stock.

Advice: Let's say you had one contract of call options on Microsoft with a strike price of $20 per share.  If the stock was at $25, you could exercise your option to buy the stock at $20 per share and have an immediate profit of $500 (100 shares x $5 per share).

 

 

 

Discuss It!

Miles Santos said:

but wouldnt you be rquired to pay a premium price as well for that option to take effect? Which would be an amount based on the difference between your strike price and the stock price?

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Definition of the Day Corporate Governance Explained

Definition: Corporate governance refers to how well a company's management and board are looking out for shareholders' interests.Advice: As shareholders, investors' should be assured that management and the board are doing the right thing for them.  Companies that do a good job of looking out for shareholders' interests are said...

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