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Options and Shares

David Frodsham and Heinrich Liechtenstein
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Heinrich Liechtenstein: IESE

Chapter Chapter 7 in Getting Between the Balance Sheets, 2011, pp 99-103 from Palgrave Macmillan

Abstract: Abstract An option gives you the right to buy a share at today’s price some time in the future. If in the future the share is worth more than it is today, you make money. If it is worth less, you don’t exercise the option, so you don’t lose money. If the company becomes extremely successful, you can make lots of money for no investment of your own. The value created as a start-up grows and prospers is shared across the team of people who build the company.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29497-4_14

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DOI: 10.1057/9780230294974_14

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