Stock options explained dummies. Job ads in the classifieds mention stock options more and more frequently. Companies are offering this benefit not just to top-paid executives but also to rank-and-file employees. What are stock options? Why are companies offering them? Are employees guaranteed a profit just because they have stock options?

Stock options explained dummies

Stock Options Explained In 2 Minutes

Stock options explained dummies. May 15, - I mentioned that an option is simply a contract, but a contract to do what? It is a contract which gives the buyer the right to trade the underlying stock. One option contract is good for shares of that underlying stock. So buying an IBM option will give you some right to trade physical shares of IBM.

Stock options explained dummies

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