The differences between stock options and restricted stock lie in four areas: symmetry of rights and obligations, symmetry of rewards and penalties, waiting period versus confinement period and exercise price versus grant price.
Early options trading in the US began in 1872, founded by the then famous financier Russell, and at that time included call and put options, the market was always OTC and required trading through brokers.
Many investors now have many misconceptions about ETF funds, which not only makes many people fearful in the investment process, but also increases investment risks. ETF funds are actually a kind of fund with relatively low market penetration, and customer participation itself is very limited.
There are some companies that are inherently riskier than others. Just look at the unprofitable biotech companies whose stock prices fell from the sky to the ground after their miracle drugs failed to pass FDA approval.
Only when K-line analysis is combined with volume analysis can we truly read the language of the market and gain insight into the subtleties of stock price changes.
Surveys conducted during the stock market frenzy of the late 1990s showed that the average investor would put a lot of effort into researching where to go on holiday, but skimped on the time spent researching stocks to buy.
For 60 years, Buffett has been preaching a simple investment philosophy: you buy a good stock, don't sell it lightly, and then wait for the price to rise.
But on this issue, I actually believe more in the words of Warren Buffett’s partner Charlie Munger, “Investing is not easy at all, and anyone who thinks investing is easy is an idiot.”
So this also leads us to today's theme:
Everyone knows that you can make money by holding stocks for a long time, but why can't you hold the stocks in your hand?