5 Essential Elements For stock options

5 Essential Elements For stock options

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When exercised, theres no quick taxable revenue, and if held for your needed time period, any revenue on sale is taxed as lengthy-term capital gains rather than ordinary money.

You will find 2 primary forms of standard options contracts: phone calls and puts. more info The difference is exactly what each enables you or another bash to perform. Contact options offers the ideal of the option buyer to purchase the underlying asset and obligates the choice vendor to sell the fundamental asset at a particular price (based on the strike cost) via the expiration day.