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

The founders’ equity includes exactly 2,185,400 stock options that each person can cash in now and 639,500 restricted stock units that vest after the IPO. — Amanda Gerut, Fortune, 26 Oct. 2026

The move, orchestrated by Everett to satisfy the demands of the company’s top-dollar backers, cheats Michael out of his stock options and equity in the company. — Senior Television, Los Angeles Times, 16 Oct. 2026

Also, the windfalls are subject to taxes and withholdings, and stock options are vested on varying schedules. — Dade Hayes, Deadline, 9 Oct. 2026

Puck staff with vested stock options will also get some liquidity in the deal, with the company expected to roll out a new equity incentive plan going forward. — Alex Weprin, HollywoodReporter, 24 Sep. 2026

Word History

First Known Use

1877, in the meaning defined at sense 1

Rhymes for stock option

• adoption

Legal Definition

stock option

see also:

option sense 3