ATFXSharing: The impact of stock cash options on investors, investing away from scams

The stock cash option refers to the option for the party who needs to pay for the transaction object after the stock trading process is completed. The party who needs to pay for the transaction object can choose to actually pay for the transaction object or fulfill the delivery procedures in cash. Investors can decide whether to exercise based on the exercise price and the current price of the stock.

The Impact of Stock Cash Option on Shareholders?

Good news, investors using stock cash options are often good because it is a common practice to protect the interests of small and medium-sized shareholders and avoid losses for investors. The price of cash options is generally slightly higher than the market price. It is also equivalent to providing a strong support level for the stock, and the stock price is likely to be above this support level, even if it occasionally falls below, it is only temporary.

When a listed company plans to implement major matters such as merger, acquisition, or division, the shareholders of the listed company shall sell their shares of the listed company to relevant parties who provide cash options at a fixed price within the specified period of time(Or its designated third party)Rights.

Fully protect the interests of all shareholders of the listed company, and the merger will provide cash options to shareholders who have the right to exercise cash options. However, whether to exercise cash options is a shareholder's right and is not affected by any other factors.

The exercise of cash option rights by shareholders of listed companies must simultaneously meet the following conditions:

【1】At the shareholders' meeting of the listed company to review this transaction, valid opposing votes were cast on the proposal regarding the stock trading plan and the proposal regarding the signing of the merger and acquisition agreement;

【2】On the equity registration date of the shareholders' meeting for the review of this transaction, the listed company holds the corresponding stocks and continues to hold the stocks representing the opposing rights until the implementation date of the cash option rights of the opposing shareholders of the corresponding stocks;

【3】Successfully completed the declaration process during the cash option declaration period.

Nowadays, cash options rarely appear in the stock market, and investors incur transaction fees when exercising cash options. The fees charged for cash options include commissions, transfer fees, and stamp duty.