stock option


: an option contract involving stock
: 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 Ells told me that using automation to lower costs allows Kernel to pay employees—of which, granted, there are fewer—a living wage, and offer benefits like stock options. Sam Stone, Bon Appétit, 14 Feb. 2024 Should the stock reach €21 and stay there for 28 consecutive days, O’Leary would be eligible for stock options valued at €100 million ($108 million). Paolo Confino, Fortune, 9 Feb. 2024 Two months later, Musk broke labor laws yet again after the world's second richest man threatened to take away stock options from employees who unionized. Jonathan M. Gitlin, Ars Technica, 3 Nov. 2023 Tesla hit those lofty goals by the end of 2022—much faster than some thought possible—earning Musk the $50 billion–plus stock option payday. Alicia Adamczyk, Fortune, 1 Feb. 2024 Attorneys for the Tesla shareholders who brought the suit had argued that the package of stock options was excessive and that the company’s directors were too close to Musk to protect their interests. Diksha Madhok, CNN, 1 Feb. 2024 Now, legal experts said, McCormick’s ruling almost certainly will require Tesla to devise a plan to hand back Musk’s stock options. Rachel Lerman, Washington Post, 1 Feb. 2024 In 2018, Musk and the Tesla board devised a package consisting of lucrative stock options if the company achieved certain revenue, profit, and sharing goals, according to the paper. Bryan Hood, Robb Report, 31 Jan. 2024 The National Labor Relations Board ruled in 2021 that Tesla repeatedly violated labor law during the UAW’s prior organizing efforts, including by firing an activist and suggesting that joining the union would cost workers stock options. Bloomberg News, The Mercury News, 11 Jan. 2024 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'stock option.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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

Dictionary Entries Near stock option

Cite this Entry

“Stock option.” Dictionary, Merriam-Webster, Accessed 28 Feb. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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