What Call Options And Put Option Contracts Are: The Basics Of Stock Options Trading

There are many different types of investment securities or vehicles available to the hopeful investor. The two most-common investment vehicles are Treasurys, such as T-bills or Treasury bonds, and stocks offered by publicly traded companies. A distinguishing feature of Treasurys is that they offer a guaranteed return on investment in the form of a promised interest rate while stocks themselves offer absolutely no guarantee as to ROI. Investors in stocks, though, can make use of various strategies to hedge or lessen their risk of loss, including stock options trading.

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