Options vs. Stocks

 
Options vs. Stocks
Similarities:

1. Listed Options are securities, just like stocks.
   
2. Options trade like stocks, with buyers making bids and sellers making offers.
   
3. Options are actively traded in a listed market, just like stocks. They can be bought and sold just like any other security.

Differences:

1. Options are derivatives, unlike stocks (i.e, options derive their value from something else, the underlying security).
   
2. Options have expiration dates, while stocks do not.
   
3. There is not a fixed number of options, as there are with stock shares available.
   
4. Stock owners have a share of the company, with voting and dividend rights. Options convey no such rights.