what is the difference between stock and stock option? and Stock~Sheep

what is the difference between stock and stock option?

I am about to open up a stock market account with TradeKing but I have no idea about investing. I was looking at the rates of trading and it said that its was $ 4.95 per trade and $ 4.95 plus .65 for a stock option contract. What is a stock option? And how is it different from a regular stock. I tried to look up the definition but all the answers are so complicated. Can someone in plain english please explain. Thank you so much!


Stock best answer:

Answer by A nobody
A stock is ownership in a corporation, a stock option is the right to buy (or sell) stock in a corporation at a stated price for a given period of time

If you don't know the difference between a stock and an option there's no way you should be opening a brokerage account
To open a brokerage account with your level of knowledge about the market and securities is foolish, it would be in your best interest to reconsider your actions.

Before you spend $ 0.01 on any investment, you must know what you're doing, why you're doing it and how to do it. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro's make theirs. Start your education by reading "Investing or Dummies" by Eric Tyson.
To continue your education select some of the following
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Make Money in Stocks" by William O'Neil
24 Essential Lessons for Investment Success by William O'Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
The Lazy Person's Guide to Investing by Paul B. Farrell
Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
What Works on Wall Street by James O'Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig

Websites that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks - http://www.1source4stocks.com/info/stock-analyst-opinion.asp or Smart Money
http://www.smartmoney.com/
Visit some of the more professional websites like Zacks Research - http://www.zacks.com/ Schaeffer's http://www.schaeffersresearch.com/ Investors Business Daily - http://www.investors.com/default.htm?fromad=1
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/

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