Whats the difference between Stock and Stock Option?
I was wondering this because it says the Flat Rate for stocks is $ 3.95
However...
Options are $ 1 per contract over 5
What does this mean?
Stock best answer:
Answer by Sion J
A stock option is simply the cost to have the option to purchase the stock.So you may have the option to purchase 100 shares of Citigroup for $ 50.00 at $ 3.00/ share. You can choose to never excercise you option and lose just the $ 50.00 instead of having invest into Citigroup and hoping that the share price would increase to $ 7.00. Therefore you're limitling your liability should the stock price go down instead of up People use stock options to hedge and many DO NOT make money using options only.
A stock is obviously a share of the company.
Stock
Stock: New Year's Day Sitting Against the Duboce Park Tree, San Francisco
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