what is Long-Term Equity Anticipation Securities (LEAPS)

**Leap** in financial contexts refers to a significant, often sudden, increase or improvement in a particular area, such as profits, prices, or investments. It can also denote a large jump or movement from one place to another. Here are the key details: 1. **Definition and Usage**: In finance, leap refers to a substantial change or advancement, akin to a large jump or sudden movement from one point to another. It is often used to describe improvements, such as a leap in profits or a leap forward in technology. 2. **Financial Instruments**: Leap is also relevant in the context of financial instruments, specifically in the form of Long-term Equity Anticipation Securities (LEAPS). LEAPS are options contracts with expiration dates that can extend beyond one year, allowing investors to capitalize on extended price movements. 3. **Investment Strategy**: LEAPS provide an opportunity for investors to hedge their long-term investments or take advantage of the current market situation by offering anticipated security for equity over a longer term. They enable investors to benefit from potential rises in stock prices while using less capital than purchasing shares outright. In conclusion, the term "leap" in finance signifies a substantial, often sudden, positive change or advancement, and it is also a term used in the financial domain to denote a type of option contract.