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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Most Americans build their wealth through a salary or hourly wage, but top execs are often paid in stock options and other share awards that vest over several years and are often tied to performance. Matt Durot, Forbes.com, 19 May 2025 In October 2022, Burke began working at Next Jump with an annual salary of $500,000 and a grant of $100,000 in stock options. Ellen Mitchell, The Hill, 19 May 2025 The one-time $60 million equity award is in non-qualified stock options that will vest after three years, with no additional annual equity awards during the first three years of his employment. Sriparna Roy, USA Today, 15 May 2025 The company has $45 million in minority interests, <$1 million in deferred tax liabilities, $140 million in outstanding employee stock options, and no excess cash. David Trainer, Forbes.com, 30 Apr. 2025 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 28 May. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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