STOCK OPTION Definition

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STOCK OPTION is a contractual right granted by a company to the named holder of the option the right to purchase the companys stock at a fixed price stated on the stock option within a specified period of time. If the stock option is not exercised within the specified period of time, then the contractual right lapses.

Learn new Accounting Terms

FIXED ASSET INVESTMENT see TRADE INVESTMENT.

BACKCHARGE is to charge a person or a firm an amount of money in order to make adjustments for a previous transaction.

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