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 Reed Hastings, who serves as Netflix’s executive chairman after stepping down as co-CEO last year, had 2023 compensation package of $11.29 million, including $10.64 million in stock options and $136,092 for personal use of company aircraft. Todd Spangler, Variety, 18 Apr. 2024 Frame short-term issues like salary, benefits, signing bonuses, hybrid work, benefits, vacation, stock options, and other things that are important to you and the employer. Phil Blair, San Diego Union-Tribune, 15 Apr. 2024 The figure includes salary, stock options, and a bonus for 2023, when Exxon Mobil beat profit expectations. Prarthana Prakash, Fortune Europe, 12 Apr. 2024 As to reward, instead of promotion, consider challenging assignments along with salary, bonuses, stock options and title changes that appropriately recognize their value. Robin Elledge, Forbes, 27 Mar. 2024 Bold bets can also be seen in the market for stock options, which are derivatives tied to the share price of a stock. Joe Rennison, New York Times, 3 Apr. 2024 And while Neumann is worth approximately $2.3 billion according to Bloomberg, the 2019 IPO fumble meant many staffers’ stock options were rendered worthless. Eleanor Pringle, Fortune, 26 Mar. 2024 Note the profit-first payoff areas: Stock price and stock options. John S. Tobey, Forbes, 28 Mar. 2024 Because, according to Huffman and the company SEC filing, the board canceled his existing stock awards and then granted him a new equity package in late 2023 that included stock, as well as stock options at various escalating strike prices. Byorianna Rosa Royle, Fortune, 19 Mar. 2024

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'stock option.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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

Dictionary Entries Near stock option

Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 24 Apr. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
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