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On option is the right to buy or sell a stock (or other asset) at a set price on or before a given date. Note, however, that 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 and NOT fundraising intiatives by companies: investors, not companies, issue options. A "call" option is a bet the stock will be worth more than the price set by the option (called the strike price). A "put" options is a bet the stock's price will go down below the price set by the option (and often considered much riskier because there is no limit to how high a price may rise).
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