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Options
An option is the right to buy or sell a stock (or other asset) at a set price on or before a given date. It is not an obligation to buy that stock at that price, just a way of locking-in a price. Options are tools of the financial markets. They are not fundraising intiatives by companies. Investors, not companies, issue options. A call option is a bet that the stock will be worth more than the price set by the option (called the strike price). A put options is a bet that the stock's price will go down below the price set by the option (and often considered much riskier, because there are no limits to how high a price may rise).