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.

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SAMPLING RISK is the possibility that conclusions drawn from the sample may not represent correct conclusions for the entire population.

PAYABLES TURNOVER is calculated: Payables Turnover = Purchases / Payables.

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