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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The stock options granted to Zaslav last year came at a time when WBD shares were trading at a low of $8-$10. Cynthia Littleton, Variety, 21 Apr. 2026 He will also be granted stock options at between $17 and $22 per-share as part of a management incentive package. Etan Vlessing, HollywoodReporter, 15 Apr. 2026 He was nearly wiped out but got back his financial footing when a venture capitalist asked him in 1986 to be chairman of the board, with stock options, of a new company called Magellan. Los Angeles Times, 9 Apr. 2026 Executives who already hold valuable stock options may prefer stable growth over aggressive expansion of the company. Brad Badertscher, The Conversation, 2 Apr. 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 27 Apr. 2026.

Legal Definition

stock option

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