We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Equity Options

See options. "Equity options" refers to options where the security in question is a stock (rather than a bond).

Example

You buy a $5 option to buy shares of your Uncle's favorite hot dog company in one month for the price of $100 per share. Congrats—you've bought an equity option. 

Find other enlightening terms in Shmoop Finance Genius Bar(f)