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What are options, equity, shares and stocks? What is the relationship between them?
When a company goes public and issues shares, it is to divide the company's assets and rights into many shares, and shares are the proof of ownership. You are a shareholder in the company. According to the number of shares you hold, it is how many shares you hold.

Equity, that is, the rights of shareholders (shareholder rights), is the comprehensive right of personal rights and property rights enjoyed by shareholders of limited liability companies or joint stock limited companies, and is the privilege of businessmen in modern market economy society. Equity is acquired by way of capital contribution when the company is established, or by way of shares when the company increases capital, or by way of equity transfer, or by way of gift, or by way of inheritance when property is divided and inherited, or by way of stock market transactions.

Shareholders are the owners of the company. The income of a company is closely related to shareholders, but the rights of shareholders are also related to the stocks they hold. For example, if you hold 65,438+0,000 shares and the company issues 65,438+0,000 shares, you have 65,438+0,000 votes at the shareholders' meeting, and your rights are very small.

One more thing you need to understand is why shareholders don't run the company directly. It is because of the separation of ownership and management rights. Obviously, it is impossible for such a large shareholder group to let every shareholder participate in the daily management of the company. In fact, they choose the board of directors, who hire people to supervise the management of the company. This means that the owner and management of the company are composed of different people.

An option is a right that gives the right to buy or sell the underlying asset at the exercise price.

Divided into call options and put options.

For example, if the copper price in your futures market is 57,000/ton, you can buy an option that is lower than you expected when the copper price is expected to rise. If you think it will rise to 60,000, you can buy an option with a price within your expectation, but the price in the option market is also determined by the relationship between supply and demand.

If the expiration price of the option does not rise, you can not exercise the right (I won't buy it if I don't earn it)

Just because you have the right to buy or not, you have to pay the price for this right, which is valuable.

Options in the stock market are what we often call warrants.