STOCK OPTIONS ARE NOT RISKY!
Author: Christopher L. Smith, B.B.A., J.D.
The words "derivative" and "stock option" have become synonymous with "high risk" in the public mind. This is an unfounded belief. Worse still, it is an unfortunate situation because the truth is that stock options can significantly reduce risk within your investment portfolio. In fact, exchange traded options came into being for the purpose of reducing investors' risk in owning or acquiring stock.
STOCK OWNERSHIP INVOLVES RISK
Many people own stock in one form or another. If you have made stock purchases in the past, you are aware that you are risking a significant amount of capital. Companies like Enron and Worldcom were once considered "high flyers," solid reputable companies, and goo...
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