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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
One major company’s latest layoffs disproportionately targeted employees with unvested stock options. Solo Ceesay, Rolling Stone, 7 May 2026 In January, GameStop outlined a compensation package for Cohen comprising stock options tied to performance targets, including market capitalization and earnings thresholds. Yun Li,anniek Bao,annie Palmer, CNBC, 4 May 2026 Each exec got seven tranches of stock options with exercise prices ranging from $1,116 to $3,727 per share. Amanda Gerut, Fortune, 29 Apr. 2026 Huang and other entrepreneurs generously compensated them with salaries, bonuses, and stock options. Robertas Bakula, Oc Register, 23 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 17 May. 2026.

Legal Definition

stock option

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