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TeachMeFinance.com - explain Buyer's option historic definition... Buyer's option -- In stocks bought on buyer's option the buyer may demand delivery of the stock on any day within the time specified on one day's notice to the seller. The buyer, unless the contract is flat (without interest), pays the seller interest at the legal rate on the price of the stock up to the day of delivery. The amount of a dividend becoming due during the pendency of the contract is payable by the seller to the buyer. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.