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| Stocks Versus Options |
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The foremost difference between stocks and options trading is that possessing shares of a stock implies actually owning a part of a company. In the case of options the purchased option is simply a contract granting rights to an underlying stock. Owning a option does not mean owning shares of a stock. Also, when you buy a stock, you buy an existing security. However, in the case of options, a seller of a contract creates the security that is purchased by the buyer of the contract. |

