an option to buy a stated number of shares of
common stock at a specified price over a given time
period (a long-term option to buy stock)
may be attached to another security issue. Investor
can usually detach and sell separately
may be issued “stand-alone”
is highly speculative for the investor, as its value is
dependent on the market movement of the stock
has a large potential for appreciation if the price of
the stock goes up