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

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

An executive may also retire with substantial company stock or stock options. — Robert Cannon, Forbes.com, 24 Sep. 2026

The merger closing will likely trigger more voluntary departures as many WBD executives had been waiting to cash out stock options post-transaction, no longer bound by contracts that typically provide a way out in case of change of ownership. — Anthony D'alessandro, Deadline, 23 Sep. 2026

These employees will be partially compensated with stock options tied to milestones at the facility. — Cleo Levin, Footwear News, 1 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