Investment PortfolioAre Stock Options Really All It’s Cracked Up to Be?
Stock Options are as old as Greece in the 7thCentury BC. The oldest known<br />
account involved Thales of Miletus predicting that the yearly olive harvest<br />
was going to be abundant, then immediately placing a deposit on all olive<br />
presses in his region. The harvest proved him right, so when the demand was<br />
overwhelming Thales ended up selling his options for considerable profit. In<br />
the modern world this is called a pro-active transaction.<br />
<br />
As far as the stock market is concerned stock options enable you to control<br />
stocks without owning it. There is a rapidly growing awareness of how stock<br />
options work, particularly because stock options are often being awarded to<br />
employees (not merely the executives), allowing them to purchase the<br />
company’s stock at a lower price than its market value after a given period.<br />
And with brokers offering free option-trading tools as well as declining<br />
commission rates, myths about the finicky nature of the stock market are<br />
gradually being reconsidered.<br />
...
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Nov 7, 2010
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