Dictionary
Thesaurus
Encyclopedia
Translator
Web

option agreement

 - 1 dictionary result
Financial Dictionary

option agreement

A formal written document that must be signed by an investor and put into the possession of the brokerage firm before the investor may trade options. The purpose of the agreement is to help assure that the investor has the financial resources and appropriate goals to qualify for trading options and that sufficient information in the form of an Options Clearing Corporation prospectus has been supplied so that the investor can understand the rules and risks.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source
Search another word or see option agreement on Thesaurus | Reference
FacebookTwitterFollow us: