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WHAT ARE STOCK FUTURES?

Stock market futures, also called market futures or equity index futures, are futures contracts that track a specific benchmark index like the S&P 500. While commodity futures require delivery of the underlying goods (IE: corn, sugar, crude oil), market futures contracts get settled with cash or get rolled over.

WHAT IS EQUITY INTRADAY CASH?

The term cash equity refers to the liquid portion of an investment that can easily be converted into cash. In relation to investing, cash equity refers to the company issuing stocks to the public. It may also refer to the institutional trading of these shares. In relation to real estate, the amount of property’s value that is not borrowed against a mortgage or line of credit.

WHAT ARE STOCK OPTIONS?

Stock options are probably the most well-known form of equity compensation. A stock option is the right to buy a specific number of shares of company stock at a pre-set price, known as the “exercise” or “strike price,” for a fixed period of time, usually following a predetermined waiting period, called the “vesting period.” Most vesting periods span follow three to five years, with a certain percentage of options vesting (which means you’ve “earned” your shares, though you still need to purchase them).