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Exercise
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ExerciseTo implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of a put) the underlying security.
RELATED TERMS--------------------------------------
Right
Privilege granted shareholders of a corporation to subscribe to shares of a new issue of common stock before it is offered to the public.
Holder
1) A person in possession of a negotiable instrument such as a bill of exchange or promissory note. 2) A person who has made an opening purchase of an option and thus has acquired the rights to them.
Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Security
Piece of paper that proves ownership of stocks, bonds, and other investments.
SIMILAR TERMS--------------------------------------
Exercise limit
Cap on the number of option contracts of any one class of contract that can be exercised within a five-day period contract.
Exercise notice
A broker's notification from a client who wants to exercise a right to buy or sell (depending on the type of contract) the underlying security of the option contract.
Exercise price
The price at which the security underlying an options contract may be bought or sold.
Exercise price or strike price of an option
The price at which the holder may buy or sell the underlying security.
Exercise settlement amount
The difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier.
Exercise value
The value of an in the money option if it was exercised today (before the expiration date). For a call option, this is the difference between the current asset price and the stike price. For a put option, it is the difference between the strike price and the current asset price.
Exercising the option
The act of buying or selling the underlying asset via the option contract.
PREVIOUS AND NEXT TERMS--------------------------------------
Execution costs
The difference between the execution price of a security and the price that would have existed in the absence of a trade.
Executor
An individual or trust institution nominated in a will and appointed by a court to settle the estate of a deceased person.
Exempt list
Sophisticated investors, usually institutional investors, who are considered informed enough that new issues can be marketed to them without a prospectus.
Exempt securities
Instruments exempt from the registration requirements of the Securities Act of 1933 or the margin requirements of the SEC Act of 1934.
Exemption
Direct reductions from gross income allowed by the IRS.
Exercise
Exercise limit
Cap on the number of option contracts of any one class of contract that can be exercised within a five-day period contract.
Exercise notice
A broker's notification from a client who wants to exercise a right to buy or sell (depending on the type of contract) the underlying security of the option contract.
Exercise price
The price at which the security underlying an options contract may be bought or sold.
Exercise price or strike price of an option
The price at which the holder may buy or sell the underlying security.
Exercise settlement amount
The difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier.
RELATED TERMS--------------------------------------
Right
Privilege granted shareholders of a corporation to subscribe to shares of a new issue of common stock before it is offered to the public.
Holder
1) A person in possession of a negotiable instrument such as a bill of exchange or promissory note. 2) A person who has made an opening purchase of an option and thus has acquired the rights to them.
Option
The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Security
Piece of paper that proves ownership of stocks, bonds, and other investments.
SIMILAR TERMS--------------------------------------
Exercise limit
Cap on the number of option contracts of any one class of contract that can be exercised within a five-day period contract.
Exercise notice
A broker's notification from a client who wants to exercise a right to buy or sell (depending on the type of contract) the underlying security of the option contract.
Exercise price
The price at which the security underlying an options contract may be bought or sold.
Exercise price or strike price of an option
The price at which the holder may buy or sell the underlying security.
Exercise settlement amount
The difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier.
Exercise value
The value of an in the money option if it was exercised today (before the expiration date). For a call option, this is the difference between the current asset price and the stike price. For a put option, it is the difference between the strike price and the current asset price.
Exercising the option
The act of buying or selling the underlying asset via the option contract.
PREVIOUS AND NEXT TERMS--------------------------------------
Execution costs
The difference between the execution price of a security and the price that would have existed in the absence of a trade.
Executor
An individual or trust institution nominated in a will and appointed by a court to settle the estate of a deceased person.
Exempt list
Sophisticated investors, usually institutional investors, who are considered informed enough that new issues can be marketed to them without a prospectus.
Exempt securities
Instruments exempt from the registration requirements of the Securities Act of 1933 or the margin requirements of the SEC Act of 1934.
Exemption
Direct reductions from gross income allowed by the IRS.
Exercise
Exercise limit
Cap on the number of option contracts of any one class of contract that can be exercised within a five-day period contract.
Exercise notice
A broker's notification from a client who wants to exercise a right to buy or sell (depending on the type of contract) the underlying security of the option contract.
Exercise price
The price at which the security underlying an options contract may be bought or sold.
Exercise price or strike price of an option
The price at which the holder may buy or sell the underlying security.
Exercise settlement amount
The difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier.
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This dictionary contains 24549 terms.
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