Examlex
What are stock options? Describe the two types of options available to investors.
Risks
The probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
Arbitrage
Arbitrage is the simultaneous purchase and sale of the same asset in different markets to profit from unequal prices.
Overconfidence
The belief that your abilities are better than they really are.
Underestimating
Underestimating refers to the act of evaluating something as less powerful, important, or serious than it actually is, which can lead to miscalculations in finance and planning.
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