When the price of a stock is high, it affects the trading volume of the stock and the investor's desire to buy, and the trading volume is very light. At this time, the joint-stock company will consider splitting stock split into shares, with the shareholders' rights and interests unchanged and the total market value of the company unchanged. Therefore, it will not affect the rights and interests of the original shareholders. In addition, the split share structure is conducive to expanding the investor base, attracting more investors to participate, and increasing transaction volume and liquidity.

From the trading point of view, one party who buys an option contract is called a buyer (or a bull), and the other party who sells the contract is called a seller (or a short). The buyer is the transferee of the right, and the seller must fulfill the corresponding obligations.

The buyer of the option has the right to choose to buy or not to buy, sell or not to sell within the time specified in the option. He can exercise this right or give up this right, while the seller of the option has only the obligations specified by option contracts.

Extended data:

When trading with options, there will be the price of options, which is usually called "royalty" or "option fee". Option premium is the only variable in the option contract. Other elements in the option contract, such as execution price, contract expiration date, transaction type, transaction amount, transaction time, trading place, etc., are agreed and standardized in advance in the contract, and the option price is obtained by traders bidding in the exchange.

1. Both buyers and sellers can perform the contract by hedging.

2. The buyer can also perform the contract by converting the option into a futures contract (obtaining the corresponding future positions at the execution price level stipulated in the option contract).

Baidu Encyclopedia-Options