stock option

noun

1
: an option contract involving stock
2
: a right granted by a corporation to officers or employees as a form of compensation that allows purchase of corporate stock at a fixed price usually within a specified period

Examples of stock option in a Sentence

Recent Examples on the Web
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Citadel Securities pays about a billion dollars a year to retail brokers such as Robinhood for the privilege of fulfilling amateur investors’ orders—to buy everything from common shares of Nvidia to stock options. Gary Sernovitz, New Yorker, 15 June 2026 Because of the company’s stock options plan, thousands of current and former employees became overnight millionaires. Eric Berger, ArsTechnica, 12 June 2026 SpaceX President Gwynne Shotwell and Chief Financial Officer Bret Johnsen each hold millions of shares and stock options. Bloomberg, Mercury News, 12 June 2026 According to The New York Times, about 4,400 employees of the rocket company — from the C-suite level to cafeteria workers — instantly became millionaires Friday thanks to stock options built into their employment contracts. Daniel Kreps, Rolling Stone, 12 June 2026 See All Example Sentences for stock option

Word History

First Known Use

1877, in the meaning defined at sense 1

Time Traveler
The first known use of stock option was in 1877

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Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 18 Jun. 2026.

Legal Definition

stock option

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