Options vs. Stocks

In order for you to better understand the benefits of trading options, you must first understand some of the similarities and differences between options and stocks.


Similarities:
Listed Options are securities, just likestocks.
Options trade like stocks, with buyersmaking bids and sellers making offers.
Options are actively traded in a listedmarket, just like stocks. They can be bought and sold just like any other security

Differences :
Options are derivatives, unlike stocks(i.e, options derive their value from something else, the underlying security).
Options have expiration dates, while stocks do not.
There is not a fixed number of options, as there are with stock shares available.
Stockowners have a share of the company,with voting and dividend rights. Optionsconvey no such rights.