The phrase refers to investment products related to a prominent European stock exchange and a well-known retailer specializing in beauty supplies. Specifically, it describes derivative instruments, such as options or futures, connected to the shares of Sally Beauty Holdings, and traded on the Euronext exchange. An example would be a call option giving the holder the right, but not the obligation, to purchase shares of Sally Beauty at a predetermined price before a specified expiration date, with that option being listed and traded on a Euronext market.
Trading instruments linked to specific companies offer investors opportunities to speculate on, or hedge against, potential price movements in those companies’ stock. For European investors, having these instruments available on a European exchange like Euronext provides easier access and potentially lower transaction costs compared to trading on exchanges in other regions. Furthermore, the availability of derivatives can improve market liquidity and provide price discovery mechanisms for the underlying stock.
