A ________ is a right to purchase a share of stock for a predetermined price at a later date.
A) stock option
B) profit share
C) realized dividend
D) mutual fund

Question

Quizplus · Accepted Answer

A stock option gives the holder the right to purchase a share of stock at a predetermined price at a later date. This is different from a realized dividend, which is a payment made to shareholders based on the company's profits, and a mutual fund, which is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, and other securities.

A ________ Is a Right to Purchase a Share of Stock