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Cashless exercise
A method of converting options into stock that requires no initial Cash payment to Cover the strike price. Essentially, a Broker briefly loans enough Money to Exercise the options, and a portion of the stock is sold immediately after Exercise in Order to repay the broker. In this respect it is essentially Buying on margin . The Broker is willing to enter this arrangement when that Broker feels that the Option holder will honor his/her Commitment and quickly Sell his/her stocks to Settle the Debt to the broker.
Related Terms: 18
Buy , Broker , Buying on margin , Cash , Commitment , Cover , Debt , Exercise , Loan , Margin , Money , On margin , Order , Option , Option holder , Range , Sell , Settle
Semi Related Terms: 798 CLICK HERE TO VIEW
10-Q ,
10-K ,
19c3 stock ,
Adjusted balance method ,
Average daily balance method ,
Accrual of discount ,
After-tax basis ,
American Stock Exchange ,
Amortization of premium ,
Asked price ,
Asking price ,
At par ,
All or any part ,
Alternative order ,
At best ,
At call ,
Automated Order Entry System ,
Active money ,
Adjustable rate preferred stock ,
Adjusted futures price ,
All-risks coverage ,
At risk ,
Add-on service ,
Abstract of title ,
Action to quiet title ,
As is ,
Assignment to creditors ,
Attorney in fact ,
After acquired clause ,
After-acquired collateral ,
Asset conversion loan ,
Assignment of mortgage ,
A shares ,
Average price per share ,
Aggregate exercise price ,
American option ,
American-style option ,
Asian option ,
At the money ,
Automatic exercise ,
Average option ,
After-tax contributions ,
Annuity factor method ,
Across the board ,
Additional paid-in capital ,
After-tax ,
After-hours trading ,
Against the box ,
At the bell ,
At the close ,
At the figure ,
At the full ,
At the market ,
At the opening order ,
Automated Pricing and Reporting System ,
Away from the market ,
Back pay ,
Below the line ,
Books of final entry ,
Books of original entry ,
Banking Act of 1933 ,
Barren money ,
Bid-to-cover ratio ,
Bureau of Public Debt ,
Buy ,
Broker ,
Broker loan ,
Brought over the wall ,
Buying on margin ,
Buy limit order ,
Buy minus ,
Buy minus order ,
Buy on close ,
Buy on opening ,
Buy order ,
Buy stop order ,
Buy the book ,
Broad money ,
Balance of payments ,
Board of Governors ,
Buying power ,
Buying basis ,
Buying hedge ,
Breaking the syndicate ,
Bill of exchange ,
Bill of sale ,
Breach of trust ,
By the book ,
Balloon loan ,
Balloon payment ,
Bank term loan ,
Bridge loan ,
Broker loan rate ,
B shares ,
Buy and write ,
Borrowed stock ,
Buy-side ,
Breadth-of-market theory ,
Beat the gun ,
Buying outright ,
Cash ,
Cash asset ratio ,
Cash basis ,
Cash budget ,
Cash control ,
Cash conversion cycle ,
Cash cycle ,
Cash earnings ,
Cash equivalence ,
Cash journal ,
Cash ratio ,
Contribution margin ,
Cost Of Goods Sold ,
Cost of sales ,
Credit order ,
Current debt ,
Cash reserves ,
Call price ,
Cash equivalents ,
Certificate of Participation ,
Collaterized Loan Obligation ,
Committee on Uniform Securities Identification Procedures ,
Common stock equivalent ,
Conversion option ,
Conversion parity price ,
Conversion price ,
Convertible debt ,
Call money rate ,
Cash account ,
Code of procedure ,
Contingency order ,
Contingent order ,
Contra broker ,
Contract broker ,
Cash dividend ,
Capitalization of income ,
Consumer Price Index ,
Cost of Living Adjustment ,
Cost-of-living index ,
Council of Economic Advisers ,
Cyclical stock ,
Cash and carry trade ,
Cash commodity ,
Cash market ,
Cash price ,
Cash settlement ,
Certificated stock ,
Chasing the market ,
Cheapest to deliver ,
Chicago Board of Trade ,
Cash surrender value ,
Cash value ,
Cash value life insurance policy ,
Cash withdrawal ,
Cost-of-living rider ,
Callable stock ,
Certificate of stock ,
Chicago Board Options Exchange ,
Consumer stock ,
Control stock ,
Cost of carry ,
Certificate of title ,
Commitment ,
Customary arrangement ,
Cancellation of debt ,
Cash advance ,
Cash collateral ,
Cash credit ,
Cash-out refinancing ,
Certificate of Claim ,
Character loan ,
Classified loan ,
Commitment fee ,
Commitment letter ,
Conforming loan ,
Consolidation loan ,
Consumer debt ,
Cost of debt capital ,
Cost of funds ,
C shares ,
Call option ,
Cashless exercise ,
Class of options ,
Close to the money ,
Covered option ,
Cash Against Documents ,
Certificate of Occupancy ,
Cloud on title ,
Cash-balance plan ,
Cash or Deferred Arrangement ,
Capital commitment ,
Cash sale ,
Class A Shares ,
Class B Shares ,
Crash of 1929 ,
Crash of 1987 ,
Cover ,
Child and dependent care credit ,
Coefficient of determination ,
Cup and handle ,
Cash buying ,
Cash delivery ,
Certificate of delivery ,
Close a position ,
Closing price ,
Cornering the market ,
Curbs in ,
Debt service coverage ,
Declining balance method ,
Double-declining balance depreciation method ,
Deposit in transit ,
Date of issue ,
Date of payment ,
Debt ,
Debt capital ,
Debt-equity swap ,
Debt financing ,
Debt limit ,
Debt market ,
Debt shelf ,
Delivery vs. payment ,
Dollar price ,
Day loan ,
Day order ,
Deep discount broker ,
Designated Order Turnaround ,
Discount broker ,
Discretionary order ,
Division of Enforcement ,
Division of Investment Management ,
Division of Market Regulation ,
Date of record ,
Dividend in arrears ,
Desk (the) ,
Division of labor ,
Delivery price ,
Deal stock ,
Defensive stock ,
Discounted Cash Flow Analysis ,
Distribution stock ,
Donated stock ,
De-escalation clause ,
De facto ,
Doing business as ,
Durable Power of Attorney ,
Date of maturity ,
Debt consolidation ,
Debtor in possession ,
Debtor-in-possession financing ,
Debt retirement ,
Debt service ,
Deed of Release ,
Deed of Trust ,
Deferred payment ,
Demand loan ,
Discharge of bankruptcy ,
Discharge of lien ,
Discount loan ,
Down payment ,
Due-on-sale clause ,
Deep in the money ,
Deep out of the money ,
Deed of Surrender ,
Department of Housing and Urban Development ,
Deferred payment annuity ,
Dirty stock ,
Dogs of the Dow ,
Depth of market ,
EBITDA margin ,
Effective debt ,
Eurodollar certificate of deposit ,
Embedded option ,
Escrowed to maturity ,
Ex-legal ,
Either-or order ,
Extended broad money ,
E-mini ,
Exchange of spot ,
Exchange versus cash ,
Ex-pit transaction ,
Employee Stock Purchase Plan ,
Employee stock repurchase agreement ,
Equity option ,
Ex-all ,
Evergreen loan ,
Exit fee ,
Early exercise ,
European-style option ,
Exchange-traded option ,
Exercise ,
Exercise assignment ,
Exercise limit ,
Exercise notice ,
Exercise ratio ,
Ex-warrants ,
Employee Retirement Income Security Act of 1974 ,
Ex-rights ,
Ex-rights date ,
First In First Out ,
Form 10-Q ,
Federal Savings and Loan Association ,
Federal Home Loan Mortgage Corporation ,
Flight to quality ,
Flow of funds ,
Full price ,
Fill or kill ,
Floor broker ,
Front-ending an order ,
Fiat money ,
Foreign currency option ,
Forward P/E ,
Factors of production ,
Favorable balance of trade ,
Foreign Debt ,
Free market price ,
Forward cover ,
Forward price ,
Futures option ,
Futures price ,
Fee-for-service ,
First preferred stock ,
Form 8-K ,
Form S-1 ,
Full stock ,
Firm commitment offering ,
Friends and family offering ,
Fair Debt Collection Practices Act ,
FHA Loan ,
Firm commitment lending ,
Fixed-rate loan ,
Floor loan ,
Full faith and credit ,
Funded debt ,
Family of funds ,
Fund of funds ,
Far option ,
Free and clear ,
Free right of exchange ,
Forward commitment ,
Gross margin ,
Gross profit margin ,
Growth stock ,
G-7 ,
GDP implicit price deflator ,
General Agreement on Tariffs and Trade ,
Gross National Debt ,
G-8 ,
Graduated payment ,
Growth and income fund ,
Gather in the stops ,
Hart-Scott-Rodino Act of 1976 ,
Hit the bid ,
House of issue ,
Health Insurance Portability and Accountability Act ,
High-tech stock ,
Holder in due course ,
Hang out loan ,
Home equity debt ,
Home equity line of credit ,
Home equity loan ,
Head and shoulders ,
Hammering the market ,
Held at the opening ,
Historical trading range ,
Holding the market ,
Horizontal price movement ,
In escrow ,
Independent broker ,
In-house ,
Introducing broker ,
Investment Advisor Act of 1940 ,
Investment Company Act of 1940 ,
Income stock ,
In line ,
Insurance broker ,
Initial Public Offering ,
Insider Trading sanctions Act of 1984 ,
Internal Rate of Return ,
Indication of interest ,
In intestacy ,
Indexed loan ,
Installment loan ,
Interest-only loan ,
In play ,
In-process research and development ,
Index option ,
Interest rate option ,
I/O strip ,
Immediate payment annuity ,
In-service withdrawal ,
Imbalance of orders ,
In and out ,
In sympathy ,
In the tank ,
Jointly and severally ,
Jumping the gun ,
Joint will ,
Joint and several liability ,
Jumbo loan ,
Junior debt ,
Joint and survivor annuity ,
Joint Stock Company ,
Knock-out option ,
Last In First Out ,
Lender of last resort ,
Law of one price ,
Lending at a rate ,
Limit-on-close order ,
Limit order ,
Limit order book ,
Limit order information system ,
Limit price ,
Lawful money ,
Law of demand ,
Law of supply ,
London International Financial Futures and Options Exchange ,
Loan stock ,
Long-term debt ,
Letter of comment ,
Living will ,
Line of credit ,
Loan ,
Loan note ,
Loan schedule ,
Loan sharking ,
Loan-to-cost ,
Loan-to-value ,
Loan value ,
Loan-value ratio ,
Lock-in ,
Lapsed option ,
Listed option ,
Life expectancy method ,
Leading the market ,
Locked in ,
Long-term gain or loss ,
Level I quotes ,
Modified cash basis ,
Money center bank ,
Money order ,
Market conversion price ,
Mezzanine debt ,
Maintenance fee ,
Make a market ,
Margin ,
Margin account ,
Margin agreement ,
Margin buying ,
Margin call ,
Margin loan ,
Margin rate ,
Market if touched order ,
Market on close order ,
Market order ,
Mark-to-market ,
Money management ,
Medium of exchange ,
Money ,
Marginal propensity to consume ,
Monetizing debt ,
Marginable stock ,
Minimum payment ,
Money at call ,
Money factor ,
Morning loan ,
Mortgage broker ,
Mortgage debt ,
Management buyin ,
Maximum price fluctuation ,
Money flow ,
Net interest margin ,
Net margin ,
Net operating margin ,
Net profit margin ,
Net quick assets ,
Non-cash expense ,
Near money ,
Negotiable certificate of deposit ,
Negotiable Order of Withdrawal ,
New York Stock Exchange ,
Notice of Sale ,
National Association of Securities Dealers ,
National Association of Securities Dealers Automated Quotations system ,
No limit order ,
No quote ,
National Debt ,
Non-equity option ,
No-Fault ,
Nonvoting stock ,
No-Action Letter ,
Null and void ,
No-lien affidavit ,
Non-conforming loan ,
Nonrecourse debt ,
Note loan ,
Notice of Default ,
No-load ,
Naked option ,
Near option ,
Non-qualified stock option ,
Non-statutory stock option ,
National Association of Real Estate Investment Trusts ,
No-load stock ,
No book ,
Off the books ,
One time charge ,
Operating cash flows ,
Operating margin ,
Office of Thrift Supervision ,
Offering price ,
Out-of-favor ,
Over-the-Counter ,
Off-floor order ,
On-floor order ,
Online broker ,
On margin ,
Open order ,
Option account ,
Or better ,
Order ,
Order flow ,
Order ticket ,
Outside broker ,
Operating profit margin ,
One-share one-vote rule ,
Option ,
Optionable stock ,
Original issue stock ,
Opinion of title ,
On account ,
On-the-spot loan ,
Origination fee ,
Option income fund ,
Option chain ,
Option contract ,
Option holder ,
Option margin ,
Option pool ,
Option premium ,
Option price ,
Option pricing curve ,
Options Clearing Corporation ,
Option series ,
Option spread ,
Options Prices Reporting Authority ,
Option writer ,
Out of the money ,
Old age, survivors, and disability insurance ,
Overlapping debt ,
On-balance volume ,
Odd lot buy/sell ratio ,
On close ,
One man picture ,
On open ,
On the opening ,
Option exchange ,
Order book official ,
Order imbalance ,
Petty cash ,
Pooling of interests ,
Pre-tax profit margin ,
Profit and loss statement ,
Profit margin ,
Payment date ,
Payment-in-kind security ,
Preferred debt ,
Premium over bond value ,
Premium over conversion value ,
Price Value of a Basis Point ,
Payment for order flow ,
Prime broker ,
Purpose loan ,
Preferred stock ,
Prior preferred stock ,
P&L ,
Price index ,
Private debt ,
Producer Price Index ,
Parity price ,
Price limit ,
Periodic payment plan ,
Policy loan ,
Public offering price ,
Pour-over will ,
Power of Attorney ,
Partially amortized loan ,
Participation loan ,
Past-due balance method ,
Piggyback loan ,
Previous balance method ,
Prioritization of debt ,
Purchase-money mortgage ,
Physical option ,
Price spread ,
Protective put buying ,
Put option ,
Paid-in capital ,
Paid-in surplus ,
Private Investment in Public Equity ,
Preservation of capital ,
Point-and-figure chart ,
Painting the tape ,
Price range ,
Price-weighted index ,
Quick assets ,
Quick turn ,
Reports and Records ,
Return of capital ,
Return on Capital ,
Return on Invested Capital ,
Return on Total Assets ,
Regulation Q ,
Redemption price ,
Reading the tape ,
Receive against payment ,
Receive versus payment ,
Regulation D ,
Regulation G ,
Regulation T ,
Regulation U ,
Round of funding ,
Rules of Fair Practice ,
Rate of exchange ,
Reciprocal of European terms ,
Retail Price Index ,
Range ,
Restricted stock ,
Regulation A ,
Reverse Take-Over ,
Right of first refusal ,
Right of rescission ,
Right to Know ,
Recourse loan ,
Rescheduled loan ,
Revolving line of credit ,
Right of recourse ,
Roll over ,
Rule of 78 ,
Redemption fee ,
Registered options principal ,
Real estate broker ,
Right of redemption ,
Retirement Equity Act of 1984 ,
Return on Capital Employed ,
Rate of return ,
Real rate of return ,
Selling, General and Administrative Expenses ,
SG&A ,
Sales fee ,
Savings and Loan ,
Sight letter of credit ,
S&L ,
Stock association ,
Stop payment ,
Securities and Exchange Commission ,
Sell ,
Series EE bond ,
Sovereign debt ,
Stock buyback ,
Student Loan Marketing Association ,
SEC fee ,
Securities loan ,
Segregation of securities ,
Sell limit order ,
Sell order ,
Sell plus ,
Sell-side analyst ,
Sell the book ,
Significant order ,
Small Order Execution System ,
Split order ,
Stock loan ,
Stop-limit order ,
Stop order ,
Stop price ,
Street broker ,
Second preferred stock ,
Stock dividend ,
Standard of living ,
Settlement price ,
Single stock futures ,
Spot price ,
Second-to-die insurance ,
Settlement options ,
Stock life insurance company ,
Secondary stock ,
Stock bonus plan ,
Stock certificate ,
Stock Clearing Corporation ,
Stock consolidation ,
Stock exchange ,
Stock index ,
Stock market ,
Stock option ,
Stock option plan ,
Stock power ,
Stock screening ,
Stock swap ,
Stock symbol ,
Stock ticker ,
Standby commitment ,
Subscription price ,
Settle ,
Statute of Limitations ,
Sale and leaseback ,
Satisfaction of debt ,
Secured loan ,
Security loan ,
Senior debt ,
Signature loan ,
Single-payment loan ,
Soft loan ,
Stafford loan ,
Standard payment calculation ,
Standby loan commitment ,
Subordinated debt ,
Swing loan ,
Staggered board of directors ,
Stock fund ,
Selling the spread ,
Single option ,
Spread option ,
Strike index ,
Synthetic stock ,
Share price ,
Split-adjusted price ,
Stock list ,
Story stock ,
Selling short against the box ,
Short cover ,
Shorting against the box ,
S Corporation ,
Short-term gain or loss ,
Subchapter M ,
Subchapter S Corporation ,
Scale order ,
Schedule C ,
Securities Act of 1933 ,
Securities Acts Amendments of 1975 ,
Securities Exchange Act of 1934 ,
Seek a market ,
Smart money ,
S&P phenomenon ,
Stop and reverse ,
T-Bill ,
Term to maturity ,
Take a position ,
Time order ,
Trailing P/E ,
Tight money ,
Trading range ,
Treasury Stock ,
Tenancy by the entirety ,
Term loan ,
Truth in Lending ,
Tenancy at will ,
Top hat plan ,
The Street ,
Timing the market ,
Taxpayer Relief Act of 1997 ,
Tax Reform Act of 1986 ,
Tax Reform Act of 1993 ,
Take a bath ,
Target price ,
U.S. Government Agency Security ,
U.S. Savings Bond ,
U.S. Treasury ,
U.S. Treasury Bill ,
U.S. Treasury Bond ,
U.S. Treasury Note ,
U.S. Treasury Securities ,
Underlying debt ,
Unsecured loan ,
Uncovered option ,
Unit of trade ,
Unit of trading ,
Variation margin ,
Value stock ,
Vetoing stock ,
Voting stock ,
Wrap fee ,
Wage price spiral ,
Waiver of premium ,
Working capital loan ,
Wraparound loan ,
Watered stock ,
Widow-and-orphan stock ,
W-2 Form ,
W formation ,
When, as, and if issued ,
When issued ,
X or XD ,
Year-over-year ,
Year-To-Date ,
Yield to call ,
Yield to maturity ,
Yield to worst ,
Y shares