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Options vs. Stocks: What's the Difference?

If you're thinking of trading stocks or options, it's good to know a thing or two about them.

By Adam Levy – Updated Mar 19, 2025 at 2:42PM

Key Points

  • Options allow for investing with less capital than stocks but increase complexity and risk.
  • Stocks offer direct ownership and potential dividends, unlike options.
  • Options have expiration dates, potentially resulting in total loss, unlike stocks' indefinite value.
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