option to buy


option to buy
option to buy UK US noun [C] (also option to purchase)
FINANCE, STOCK MARKET an agreement that gives an investor the right to buy a particular number of shares, or other financial assets, at a fixed price and before a fixed date: »

The option to buy expired last Friday.

FINANCE, COMMERCE an agreement in which a company buys a product from another company and has the right to buy more of that product later, but does not have to do so: exercise/have/receive an option to buy »

The executive can exercise the option to purchase and then resell it into the market at the higher price.

FINANCE, PROPERTY a financial agreement that gives someone the right to buy property or land within an agreed time and for an agreed amount, especially after they have rented it for a particular amount of time: »

The city leased the building to Rescue Ministries in 2009 with an option to buy.

»

City officials signed a $5,000 90-day option to purchase on the building, which is located in the heart of downtown.

Compare RENT-TO-OWN(Cf. rent-to-own)

Financial and business terms. 2012.

Look at other dictionaries:

  • option to buy — At the end of a finance lease or similar asset finance arrangement the lessee may be able to exercise an option to purchase the equipment at a nominal value Easyform Glossary of Law Terms. UK law terms …   Law dictionary

  • option — op·tion 1 / äp shən/ n 1: the power or right to choose; also: a choice made or available 2: a privilege of demanding fulfillment of a contract on any day within a specified time 3: a contract conveying in exchange for the payment of a premium a… …   Law dictionary

  • Option — Op tion, n. [L. optio; akin to optare to choose, wish, optimus best, and perh. to E. apt: cf. F. option.] 1. The power of choosing; the right of choice or election; an alternative. [1913 Webster] There is an option left to the United States of… …   The Collaborative International Dictionary of English

  • option to purchase — UK US noun [C] FINANCE, STOCK MARKET, COMMERCE, PROPERTY ► OPTION TO BUY(Cf. ↑option to buy) …   Financial and business terms

  • option — an agreement, often for a consideration, which permits the purchase or sale of something within a stipulated time, in accordance with the terms of the agreement. For example, a right by a tenant to take up a further lease of premises, usually… …   Financial and business terms

  • Option — Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Investors who purchase call options bet the stock will be worth more than the price set… …   Financial and business terms

  • option — Right of election to exercise a privilege. Contract made for consideration to keep an offer open for prescribed period. A right, which acts as a continuing offer, given for consideration, to purchase or lease property at an agreed upon price and… …   Black's law dictionary

  • option */*/*/ — UK [ˈɒpʃ(ə)n] / US [ˈɑpʃ(ə)n] noun [countable] Word forms option : singular option plural options 1) something that you can choose in a particular situation We ve discussed all the marketing options and decided to go for television advertising.… …   English dictionary

  • option — op|tion [ apʃən ] noun count *** 1. ) something that you can choose in a particular situation: We ve discussed all the marketing options and decided to go for television advertising. option for: We have three different options for financing the… …   Usage of the words and phrases in modern English

  • option — The right to buy or sell a fixed quantity of a commodity, currency, security, etc., at a particular date at a particular price (the exercise price). Unlike futures, the purchaser of an option is not obliged to buy or sell at the exercise price… …   Accounting dictionary


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