Dividends Regular payments made by companies to their stock holders, which can vary over time. These payments compensate the investors for not receiving interest which they might have received with other investments. Investors can also make a profit if the stock price increases over time. Future dividends can have an impact on the worth of an option as the equity or underlying price normally drops when a dividend payment is made. Equity or Stock Non-debt capital employed by companies to finance their operations.
Investors earn returns in the form of dividends which can vary over time.
OTC options, are constructed to meet a clients needs, so prices for these can only be obtained by approaching a financial institution. An option which may only be exercised at expiration. See also American Option . The price at which the buyer and seller agree the underlying will be exchanged for, if the option is exercised. The deal is said to be struck at the selected level.