But industry analysts warned that it will take some time before equity options become popular because the government may change taxation policies and many lower-tier securities houses are inexperienced in financial derivatives transactions. Tokyo and Osaka exchanges began trading in options on 20 stock issues. Mitsubishi and the Industrial Bank of Japan. Exchange officials said they selected internationally known, heavily traded corporations that also have large numbers of shares and shareholders. The two exchanges plan to add issues in coming years.
Options allow investors to hedge stock holdings or leverage a small investment into a large bet.
If stock prices fail to rise or fall as they expected, investors have only to not exercise options and forfeit trading fees, called premiums. The British medical authorities have approved the Swedish pharmaceutical company Astra's, medicine Colazide for acute treatment of the intestinal disease ulcerous colitis. The decision in Great Britain will mean that Astra can expect to also become approved for the same purposes everywhere else in the European Union. Colazide will be introduced in the British market during the second half of 1997 and in the rest of Europe it will be introduced in 1998. 6 Includes Journal Name, Volume, Pagination, and Publication Date.