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An executive is given the right to purchase shares of the company's stock, at a fixed price, some time in the future.
A stock option is a right to purchase shares of a company at a fixed price.
Stock options give employees the future right to purchase shares at a predetermined price.
Shareholders do not have a pre-emptive right to purchase shares sold by other shareholders of the company.
In return, lenders would receive the right to purchase shares in Berkshire Hathaway.
In 1959, Sherman Fairchild exercised his right to purchase shares of the members of the traitorous eight.
Brokerage houses reported yesterday that 65 percent of the investors who won the right to purchase shares after an initial frenzy decided to pass up the opportunity.
Traders buy call options, giving them the right to purchase shares of the underlying company at a set price within a specified period, when they expect the stock to rise.
Typically, stock option plans give employees the right to purchase shares at a fixed price over a 5-or-10-year period, which provides a long time during which the price can become favorable.
The warrants, which give the holder the right to purchase shares in the issuer at a pre-set price within a given time period, were often denominated in foreign currencies.
And a big chunk of executive pay in the United States comes in the form of share grants and stock options, the right to purchase shares at a given price over a few years' time.
If the investor is bullish, he or she might buy a call option, which gives the right to purchase shares at a preset price by a specified date, a right that becomes more valuable as the price of the underlying stock goes up.