There are readers who asking me regarding stock options. They may have been offer a stock options from their company. Yahoo Finance has a good reading material for you, regarding stock options.
Options on stocks and stock indexes are derivative instruments. Stock investors may use stock options to hedge against a price decline, to lock in a future purchase price, or to speculate on the future price of a stock. Employees may also receive stock options through an employee compensation plan. For employees, stock options represent the potential for growth in value and the possibility that the increase in value will be taxed at a favorable capital-gains tax rate.
6 Comments
Options are actually a hard subject to grasp. thanks for the post
A’kum Pakdi,
Maybe my question is ‘offensive’ for some investors especially Muslim Malays …but becoz I’m a conservative Muslim investor, what’s the syariah hukm/law for options trading? I know you’re ex-SMAP K & UIAM (you know the hukm of riba right?), so can you give me the answer? I found some answers from some websites but becoz yours is one of my best websites for investment & you looks savvy in this area, please share your opinion/answer to me ok.
Thanx. Ws.
Abu Aswad, I’ll answer about it later. Thanks for the question.
Ok, thanx Pakdi for your reply…all the best. Jzkk. Ws.
abu aswad, kindly visit
http://www.pakdi.my/blog/hukum-options/
Ok Pakdi, Thanx heaps for your answer. Jzkk. All the best. Ws.