Whats The difference??

What is the difference between an Equity and a option?

Thanks

 

One is a claim, the other is a contract.

 

I still dont understand. I am very new to this, only a couple days.

 

Oh, you need at least a week to digest.

 

so you cant explain the difference between the two?

 

let me see if I can recall this right...

the option is a contract that gives you the possibility, but not the obligation, to buy{call} or sell{put} an equity at a previously agreed time and price.

or something like that.

 

Tyler, if you are very new maybe you don't know this:

http://www.investopedia.com/dictionary/

It's a good source of definitions.